Certus acquires Eos Solutions

Certus acquires Eos Solutions to create the region's largest specialist IBM software and services company

Auckland (June 9, 2009) - New Zealand-based Certus Solutions has acquired Australian company Eos Solutions Pty Ltd to form the largest specialist IBM software service and support company across the region.

The merged company - which will trade as Certus Solutions - will have a combined list of 400 customers and will have 100 staff working from offices in Sydney, Melbourne, Brisbane, Auckland and Wellington.

Certus managing director Brian Allen said the strategy behind the Eos acquisition was to expand the solid IBM services foundation provided by Eos with a broader capability offering. Certus will invest in both the number of service consultants and the geographical coverage of that personnel. A key initiative will be to provide integrated support and service capabilities around all of IBM's five major software brands, building on Eos' existing strong service capability in this area.

"As a result of the acquisition Eos' customers will have greater access to development, support and integration services across the whole IBM software product range," Allen said. "For Certus, the Eos customer base will provide a strong growth platform from which to address a much wider market."

Allen said IBM's continued investment in its software business was also a contributing factor to the acquisition.

"IBM is continuing to invest in its software business and now has the largest business software portfolio spanning every category with the exception of ERP," he said. "This business is growing strongly, currently delivering US$20 billion of IBM's annual revenues and 40 per cent of its profit, heading to 50 per cent next year. IBM is looking to partners such as Certus to play an expanded role in helping customers buy, implement, support and integrate its software, to help achieve its business targets."

The existing Eos management team and personnel will stay with the new organisation and Eos managing director Annette Henry will take over the role of managing director for the new Australian organisation.

"The acquisition makes sense, both in terms of the potential for accelerated growth as well as providing new opportunities for Eos personnel," Henry said.

"The deal includes shares in the new organisation for Eos' existing shareholders and we have a vested interest in growing shareholder value in the combined companies. The acquisition will enable us to fast track towards becoming a much more significant player in the IBM software market across Australia and New Zealand."

In addition to Annette Henry becoming managing director of the wholly-owned subsidiary, Certus Solutions Pty Ltd, Sean Kelly and Bradley Rasmussen will take on the roles of Line of Business director and principal consultant, respectively.

Allen said Certus expects to make further acquisitions.

"We're forecasting 30 per cent growth in revenue and a rapid scaling up of staff numbers over the next 12 months, with Australia being a major contributor to that growth," he said. "This target is based on our forecasts for organic growth and we expect to exceed that though further acquisitions."

ENDS

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