Perth-based integrator Focal Systems has signaled its intention to merge with fellow West Australian company Enterprise Solutions in an attempt to bolster its enterprise resource planning (ERP) software sales.
According to Focal Systems - which specialises in IBM hardware and ERP software deployments - the company will acquire Enterprise Solutions effective July 1. The move is a bid to fast track Focal's sales of ERP software by Danish-based Navision.
Enterprise Solutions has been a Navision Solutions Centre for three years, while Focal Systems is looking to ramp up its ERP software business after partnering with the vendor in July last year.
"If you look at ERP or enterprise accounting, or whatever you care to name it, the popular [offering] over the past few years has been SAP. But that's starting to fade now," says Mick Cook, managing director Focal Systems, whereas he feels ERP software sales in the mid-market space is gaining momentum.
"We're focussing over the next 18 months on Navision, and the easiest way to fast track sales is to purchase your first clients," he says. Enterprise Solutions has existing Navision clients including furniture chain Ikea and Jandakot Airport.
But Focal has not had long to wait before bolstering its client list with a rash of recent deals including what insiders are touting as the biggest Navision deployment in Australia with a yet to be revealed Japanese manufacturer.
Chris Stevens, managing director of Enterprise Solutions, is optimistic the merger will provide his existing clients and future customers with the support only a significant organisation can provide.
"We needed to be bigger. At the end of the day I've seen a lot of Navision Solutions Partners going the same way," says Stevens.
Since Navision's merger with ERP rival Damgaard last year, Stevens claims the vendor has moved up the enterprise to service the high-end of the mid market and the low-end of the large corporate space. As a result Stevens claims he feels a responsibility to provide his customers with more available resources.
"I need to be able to provide my customers with a company that has at least three or four [software] engineers they can talk to when they call there," suggests Stevens.