Britehouse subsidiary, 3fifteen has acquired CRM specialist BMO Software for an undisclosed cash sum to create one of the largest Microsoft CRM consultancies in South Africa.
The company says the acquisition will enable it to capitalise on the growing demand for large CRM solutions in the local market.
“It’s a deal that works out perfectly for both parties,” says James Baber, MD of 3fifteen, adding that the fast-growing demand for CRM solutions in the local market was the main motivation behind the deal.
“While we’ve had good success in securing and delivering on business in the CRM market, our foray into this space revealed that we needed to scale our operation up in order to capitalise on opportunities we simply weren’t reaching,” he says. “While growing our CRM team organically would have suited us best, an acquisition would have allowed it to immediately gain access the scale it needed to chase new opportunities.
“The close cultural fit we found when we took a closer look at BMO, as well as the fact that BMO is well-known as the delivery muscle behind many of the larger local Microsoft partners’ CRM implementations sealed the deal for us,” he adds.
”We feel like we’re gaining the benefits of growing organically and by acquisition with this transaction – we’re extremely positive about the opportunities it presents,” he says.
Paul Slade, MD of BMO says that his company is extremely satisfied with its decision to sell to 3fifteen.
“We’ve known that acquisition was going to be our primary route for expansion for some time now,” Slade explains, saying that 3fifteen’s offer is the eighth his company has entertained.
“The previous seven bidders quite simply didn’t have the cultural fit we were looking for,” he says. “3fifteen and BMO, however, fitted each other perfectly.
“It really was a no-brainer,” he says.
Looking forward, Baber says that the CRM expertise gained through the acquisition will allow it to begin addressing an entirely new group of customers and at the same time bring new expertise into existing accounts.
There is no reason that relationships BMO held with Microsoft partners in the local market should end, he says.
“We have experienced the shortage of skills in the CRM environment first hand and remain open to partnerships with other Microsoft-aligned partners,” Baber says.
The transaction is effective immediately and the companies are already meeting with key customers and partners to discuss the transition.
“Largely, the news has been met with enthusiasm,” Baber adds. “We’re convinced that this positive sentiment will carry through to the rest of the market,” he says.