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Two top Vancouver solution providers merge

Channel Strategy

Two Vancouver based solution providers who are both on CDN’s Top 100 list have announced they will be merging their operations.

DTM Systems, one of the oldest IT consultants in Western Canada and Knowledgetech have signed a non-binding letter of intent to merge. This deal could create one of Western Canada’s largest and most experienced independent management and IT consulting firms in the channel. DTM, which has been in business for 35 years, stands currently at No. 53 on the CDN Top 100 list with revenues of $20 to $30 million. KnowledgeTech is at No. 74 with revenues of $10 to $15 million. Combined the merged organizations would be in the Top 40 on the CDN Top 100 Solution Providers Rankings.

The new company will still be based in Vancouver, but as of now will be without a name. The new company plans on announcing one soon.  The merged company said they plan to position the new company expand through organic growth and acquisition and a key to this deal is KnowledgeTech’s office in Kirkland, Wash. DTM did not have a U.S. presence.

Al Ytsma, President of Knowledgetech said many competitors in the market are shrinking, while his company continues to see opportunities to expand and we’re capitalizing on them.

“This merger is just the tip of the iceberg for us. We believe the union of our two companies has the potential to deliver enormous benefit to our customers in terms of our existing offerings as well as a host of new possibilities that are open to us as a merged company,” Ytsma said.

The two companies will have more than 55 years of combined experience. Some of the reasons for the merger are:

  • The ability to deliver greater value;
  • Be more innovative; and
  • Produce higher returns on client investments.

In addition, new market opportunities will create greater leverage with partners and will strategically position the company to address the complexity of business and technology concerns, allowing them to address the complete life-cycle of solutions, provide the most comprehensive set of industry solutions and build on each company’s R&D investments.

Paul Martin, president of DTM, said, this merger carves a space for us as one of the largest independent consulting firms in the Western Canadian region. The combined resources, intellectual property and expanded offerings; will help us deliver a unique set of end-to-end services and solutions—from business strategy, CRM and SharePoint to ERP and advanced infrastructure.

Do not expect any staff changes. According to the two companies, this merged company will continue working with existing talent as well as engage in new talent that will help drive the future of the company. The combined companies will carry forward with both executive teams and will now have over 150 professionals.

Knowledgetech is a Microsoft Dynamics CRM partner and the company won a 2011 Impact Award from the software powerhouse. But they have also developed partnership with lesser-know but highly strategic vendors such as K2 for automated business process and Scribe Software Corp. for data encryption.

DTM is also a Microsoft Gold partner and has forged relationships with HP, IBM, Citrix, Cisco, Lenovo and VMware. On the outset their portfolio’s look complimentary.