17th Dec 2012. IT services firm UXC Limited (ASX:UXC) has announced that its wholly owned subsidiary, UXC Eclipse Intelligent Solutions (USA) Inc. (part of the UXC Eclipse group) has finalised the acquisition of the shares of Cole Systems Associates, Inc. (Cole Systems). Terms have not been disclosed.
With over 30 full time employees based in New York, Cole Systems has grown to achieve strong earnings on annual revenues of approximately USD$10m. This will bring the UXC Eclipse North American footprint to over 65 people with annual revenue in excess of $20m.
The consideration will be paid in cash with some consideration being deferred pending the achievement of specific earnings targets over specified periods. The earnings profile and growth expectations of the business together with the quality of earnings will make a positive contribution to earnings in the 2nd half of FY13.
With a dominant position in the Australia / New Zealand market, and with strength in Dynamics AX, the potential to build on the North American platform in the US market presents UXC with a significant opportunity to grow its UXC Eclipse business. Dynamics AX has been growing at over 50% per annum in what is now a sizeable and rapidly growing market.
Eclipse is already well established in the Microsoft Dynamics community and has been a member of the Microsoft Inner Circle (top 1% of Microsoft Dynamics resellers world-wide) since 2001. UXC Eclipse is also a recognized winner of over twenty Microsoft awards in the past seven years – most recently 2012 Microsoft Dynamics ERP Partner of the Year in Australia, a global finalist in the Microsoft Dynamics Reseller of the Year in 2011 and winner of Microsoft Finance (ERP) Solution of the Year, Canada in 2010.
Cole Systems specialises in implementing ERP, especially Dynamics AX, for a broad range of medium to large companies. The acquisition builds a growth platform for UXC after having established a strong organic multimillion dollar business in North America focused on Microsoft Dynamics AX solutions for the resources sector.
Cole Systems CEO, David Weiner said of the acquisition, “This is a truly exciting time for our customers, team of professionals, and the Microsoft Dynamics community. The culture, the customer-centric approach and its maturity as a Microsoft Dynamics partner, makes UXC Eclipse an ideal fit for Cole Systems. Being part of UXC Eclipse and UXC means we have access to global skills and infrastructure to scale the business up to a new level.”
Weiner and the founder Ivan Cole will continue carrying out senior roles at UXC Eclipse guided under the leadership of Eclipse CEO Bradley Stroop.
Mr Cris Nicolli, UXC Managing Director said “At UXC we seek to build deep capabilities and deliver outstanding customer centric solutions and to continue to improve our market share and drive earnings growth. We see the high growth US market, coupled with our strong industry experience in Australia and Canada, as ideal platforms to combine with Cole Systems, a highly respected Dynamics AX integrator, and a compelling opportunity for a strong return on our investment and furthering our strategy of building our ERP leadership. There are strong marketing, process and industry vertical synergies that will support our growth aspirations which together with the strong financial position of UXC will allow increased scale of opportunity to be pursued.”
“The positioning of our business on the US east coast will also provide increased opportunity for UXC Eclipse to further penetrate the US market with our own IP solution, DAXeam, which is aimed at the Enterprise Asset Management market.”
“UXC Eclipse is a Gold Partner for Microsoft Dynamics ERP and CRM and the leading Microsoft Dynamics partner in Australasia. This expansion of our North American operations will further improve our position as one of the largest Microsoft Dynamics AX partners globally” Mr Nicolli continued.