ASX-listed IT consultancy SMS Management & Technology has acquired boutique business intelligence consultancy Pelion.
SMS CEO Tom Stianos
(Credit: SMS M & T)
The acquisition will give SMS an additional $6 million per annum in revenue, and access to the NSW business intelligence market, in particular integration work on Cognos BI platforms.
Pelion, which has been established for eight years, boasts a client list that has included NSW RailCorp, NSW Treasury, Commonwealth Bank, Allianz and ING amongst others.
"Pelion brings us another specialist practice with consistent revenues and a growing number of annuity contracts," SMS chief Tom Stianos said in a statement. "We have already partnered with them on several projects and I am confident of the synergy benefits and cultural fit," he added.
SMS last month joined the Standard's and Poor's ASX200 cohort of the largest listed companies by revenue and market capitalisation.
SMS's NSW arm has around 100 consultants. The company did not disclose how many staff would come across with Pelion; however, it is understood to be on a drive to bolster its NSW business as a key Victorian account it holds with Telstra subsidiary, Sensis, winds down.
The company listed its acquisition of Pelion as "price sensitive", though members of the trading forum HotCopper have remarked "this one will fly under the radar". SMS's share price came off a brief high on Tuesday of $3.18 — a level not seen since September 2008 — before falling back and closing yesterday at $2.75.
The Pelion business was acquired for three times historical earnings with two thirds of the purchase price subject to performance over the next three years. Stianos was unable to comment on the acquisition to ZDNet.com.au at the time of publishing.
