ERP integrators, City Software and GPS IT Solutions, are combining their capabilities into a unified business.
City Software has run its solutions arm for the past 10 years with moderate success, CEO, Lorenzo Coppa, said. It specialises in SAP Business One offerings. GPS IT, on the other hand, is a 12-month old, ERP start-up founded by industry veterans, Anthony Russo and Ian Hill. The Melbourne-based company largely resells and consults on Sage business software, but also has SAP skills.
“We were looking for options on running our solutions business – we needed a person with energy and experience to run it,” Coppa said. “I’d been running the business but it needed a dedicated and focused leader.
“We heard about GPS IT and the great work they’d done, so we met with Anthony to see if there were synergies. City Software had an excess capability in our professional services team. GPS has very strong sales skills.”
Under the new structure, Russo will become managing director of the combined operation. Hill will stay on as sales and marketing director and Coppa will become a financial stakeholder.
The team initially consists of 21 employees, but will look to expand sales and professional headcount along the east coast over the next 12 months.
Their customer sweet spot is organisations with 50-100 seats.
“We’re very excited about this – it’s an opportunity to become a leading ERP solutions provider in this country,” Coppa said. “GPS’ customer base is closely aligned with ours, but they have the Sage products, which expands opportunities for us.”
Russo said benefits for GPS included leveraging City Software’s customer and channel base to sell new solutions, gaining access to a presence in Brisbane and Sydney, and expanding its professional services team.
No decision has been made on the name of the combined business, but fresh branding was a possibility, Coppa said. The companies are in a pre-merger period now but expect to fully merge from July 1. Financial details have not been disclosed.
Coppa said the economic downturn slowed ERP sales over the past 18 months, but claimed the channel was also to blame for unrealised opportunities selling solutions to customers.
“It’s the responsibility of the channel to communicate the value of ERP systems and help customers realise that,” he said. “There are strong players in the enterprise market, like Oakton, but not in the smaller and mid-market space.”