ASX-listed integrator, SMS Management and Technology (ASX: SMX), has acquired data management services provider, Pelion Group.
In a release to the ASX, the integrator claimed Pelion would add $6 million in revenue to the SMS business, and that it was acquired for three times historical earnings, with two thirds the purchase price subject to performance over the next three years.
Pelion services include information management, performance management and business management.
In the release, SMS CEO, Tom Stianos said Pelion was appealing due to its synergy benefits and cultural fit, and the consistent revenues and annuity contracts it would bring SMS.
The acquisition is expected to help SMS reach into verticals such as financial services, Government, manufacturing, pharmaceuticals, and transport and logistics.
SMS is enjoying a strong 2009, having announced a 17 per cent net profit increase for the previous six months in February.
Earlier this year, S Central, ComputerCorp and Synergy Plus merged, as the industry continues to see consolidation amongst integrators.