Softchoice Corp. has acquired its second large solution provider in as many months pulling the trigger on a US$45 million deal for Software Plus of St. Louis.
In October, Softchoice acquired the technology solutions and services divisions of NexInnovations Inc. for $10 million. Software Plus is one of the largest corporate software resellers in the U.S. mid-west and the ninth largest Microsoft Large Account Reseller (LAR).
With this acquisition, Softchoice now becomes the fifth largest Microsoft LAR in North America.
The deal also brings Softchoice’s Microsoft Enterprise Agreement expertise, virtual supply chain technology and TechCheck assessment services to Software Plus’s customer base, while expanding Softchoice’s footprint in the U.S. market.
According to Softchoice, there is very little customer overlap and helps the company grow in both hardware, software sales, across the mid-market, enterprise and Public Sector areas.
On a trailing 12-month basis, Software Plus’s revenues are estimated at approximately US$192 million. Softchoice expects the transaction will be accretive to shareholder value in 2008. Funding for the transaction was provided by an extension to Softchoice’s current credit facility.
“Today is an important milestone in the implementation of our U.S. growth strategy,” said Dave MacDonald, president and CEO of Softchoice, said in a prepared statement.
“As we build on our success in the small and mid-market and begin moving upstream into the enterprise space in the U.S., we are delighted to welcome aboard a new team of sales employees with a well-earned reputation for delivering comprehensive software licensing solutions to some of North America’s most distinguished corporations. We look forward to serving our new customers with the same passion and dedication that has made Softchoice one of the industry’s leading organizations.”
