One of Ireland’s oldest software companies System Dynamics has acquired enterprise firm Software Resources for an undisclosed sum. The acquisition is expected to boost System Dynamics’ turnover by almost €3m to €18m this year.
System Dynamics said this morning that no new shares will be issued and that the acquisition will be paid for in cash.
Software Resources’ 22 staff will join System Dynamics at their HQ in City Quay, Dublin and overall staff numbers at the combined group will total 150 by the end of this year.
Software Resources was set up by Joe Gorman in 1984 and is the leading supplier of Oracle/JDEdwards products and consulting services in Ireland and it is also a leading provider of Business Objects products and consulting services.
Gorman, who will exit the business once the deal is concluded, said: “I am very proud of Software Resources and what we, with an excellent staff, have achieved in the delivery of complex business solutions to a great client base. I believe the time is now right for me to exit the business and pass it on to an organisation with a focussed vision and strategy. System Dynamics fits the bill perfectly with excellent synergy.”
Software Resources’ client base of over 60 customers includes the Department of Finance, Cork City and County Councils, Tedcastles, EBS and Element 6.
Tony McGuire, managing director of System Dynamics, said that the IT market has had difficulties in recent years but the industry is now seeing a period of growth, although decision times are longer and buyers are cautious.
This is the company’s fourth major acquisition in the past three years and McGuire said the company aims to make future acquisitions.
“This acquisition is part of a strategy undertaken by System Dynamics to give the company scale and accelerate growth in the financial services, government and corporate sectors and make us the leading player in our field,” McGuire said..
“Consolidation is vital in the IT industry and while we will continue to grow organically, acquisitions remain essential to achieve the scale, capability and credibility that will enable us to compete at the very highest level in Ireland’s ICT market.”
By John Kennedy