By Anne Widjaja
UXC-owned SAP software and services company Oxygen Business Solutions has recently acquired specialist SAP consulting firm Stream, as part of a plan to accelerate growth .
According to Oxygen CEO Stuart Dickinson, the decision to acquire Stream was driven by SAP doubling its own revenue forecast for 2010-2015.
Dickinson commented that Oxygen was investing in “people and resources” to ensure that the company had the “breadth and depth, and the scale, that the rapidly growing SAP market requires”.
“The Stream acquisition adds around 40 high quality SAP-trained consulting and support staff,” Dickinson said. “Stream’s customer satisfaction ratings are very high, as are customer and staff retention levels. The two businesses are highly complementary with no overlap in sales pipeline.”
Founded in 2006, Stream already has strong market presence in the SAP sphere, with both government and commercial account experience. The company currently offers an end-to-end service for SAP enterprise resource planning, NetWeaver, business intelligence and SAP All-in-One software sales, integration and support.
Stream has grown to achieve annual revenues of around AU$10 million with offices in Sydney, Melbourne, Brisbane and Perth.
Dickinson said that Stream’s software support revenue would significantly boost Oxygen’s revenue figures, “thanks to the addition of Stream’s successful SAP All-in-One sales and implementation capability”.
Dickinson also explained that the acquisition was in line with the strategic growth plans of Oxygen’s parent company, UXC, which is aiming to strengthen the company’s leading market share within the ERP application market.
”The combined entity will be very balanced in terms of its geographical reach and sector strengths,” Dickinson said. “Stream will enable Oxygen to further extend its portfolio of services and give it improved delivery capability across both medium sized businesses and the enterprise market.”
Stream managing director, Dawie Gerber, also highlighted that the union of the two companies would build a larger and more competitive business, and provide Stream with the opportunity to introduce its innovative IP to existing Oxygen customers.
“Stream and Oxygen have built strong Australian SAP brands by growing and retaining skilled staff. By combining our complementary skills we will be able to provide an integrated capability with the breadth and depth of service that will appeal to SAP customers looking for a single Australian based supplier to meet all their SAP needs,” Gerber said.
Whilst the completion of the acquisition has been planned for the end of August, the acquisition will remain conditional until mutual contractual requirements by both parties are met.
