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IBM partner, Certus, acquires Software Traction

The acquisition would help boost Certus’ growth projections for the year, taking its income forecast to about $50 million

IBM software and services provider, Certus Solutions, has acquired another IBM partner, Software Traction, for an undisclosed sum. Certus CEO, Brian Allen, said the acquisition was strategic for Certus due to Software Traction's expertise in IBM’s Rational and Tivoli software applications. Software Traction has about 80 customers in corporate and government sectors and was founded three years ago by former Rational Software regional manager, Stu Garrow.

The company achieved annual revenues in excess of $9 million and has about 27 people across its Sydney, Melbourne, Brisbane, Adelaide, Canberra and Perth offices.

“The Certus ‘pure play’ strategy is to provide depth and breadth of services across all of IBM’s software brands, with a total focus on IBM products,” Allen said.

The acquisition would help boost Certus’ growth projections for the upcoming fiscal year, taking its income forecast to about $50 million and headcount past 100. Some redundancies are on the cards, but Allan said this was unavoidable, particularly with administrative functions. However, customer facing roles would not be affected. Software Traction’s Garrow, will play a key role in the combined company. “Certus is on a strong growth track. We are looking at further expansion within Australia. The Rational and Tivoli expertise that Software Traction brings to Certus will be an important part of this future growth,” Allan said. “We also value and respect the sales and management capabilities of Software Traction, which will adapt well to the pure play model.”

Certus first stepped up its Australian presence in April 2009.

Later on that year, it purchased Brisbane-based Eos Solutions.

Nominations for the 2012 ARN IT Industry Awards open on Tuesday, June 12.

More about: Certus Solutions, IBM, IBM Australia, Rational Software, Tivoli
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