IT services outfit, DWS Advance Business Solutions, will acquire Microsoft systems integrator, Strategic Data Management (SDM), for $8.3 million.
DWS CEO, Danny Wallis, said part of the company's vision was to enter and build upon geographic spaces it does not currently operate in. DWS has offices in Melbourne, Sydney and Brisbane and just moved into Adelaide.
"SDM is predominantly Adelaide-based. We started an office there about two months ago and our strategy has been to move to a geographic space and get a kickstart," he said. "It's a very well managed company and it's in the Microsoft space. With all those things together, it was a very good price we bought it for."
SDM also has offices in Sydney, Melbourne and Canberra. Wallis said the systems integrator provided similar services to DWS, but they worked fairly closely on Microsoft products and platforms in providing installation and maintenance. All 85 staff will be kept on-board, including 45 in Adelaide. Wallis said SDM had a vast customer list and larger client base than DWS because of its Microsoft relationship.
DWS provides services around application integration, project management, business intelligence, data warehousing and support.
"It is our mission and strategy to get this company bigger in size and over a period of time, one of the biggest companies on the ASX," Wallis said. "We always have a four or five acquisitions that we look at any point in time."
DWS planned to keep the SDM branding for its smaller brand but take the larger clients and staff that worked on those accounts over to DWS.
"SDM will still continue to work in partnership with Microsoft and attain its own clients but it will be used as an incubator for future management and getting people into the company," Wallis said.
The transaction is expected to be completed by January 1.