Oxygen accelerates growth with Stream Consulting Services & Technologies acquisition
UXC (AU:UXC) owned SAP software and services integrator Oxygen Business Solutions has acquired Australian specialist SAP consulting firm Stream as part of Oxygen's plan to accelerate existing strong organic growth with strategic acquisitions.
Oxygen CEO Stuart Dickinson says Oxygen’s focus on growth is driven by SAP’s own forecast of doubling its revenues between 2010 and 2015. “As a specialist SAP software and services company operating across Australia and New Zealand, Oxygen is investing in people and resources to ensure we have 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. 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. The addition of the Stream customer base will provide us with a significant increase in software support revenue. We will also benefit from new software sales revenue thanks to the addition of Stream’s successful SAP All-in-One sales and implementation capability.”
Owned by its four Directors, Stream Technologies (www.streamt.com) was founded in 2006 and has grown to achieve annual revenues of around AU$10m with offices in Sydney, Melbourne, Brisbane and Perth. The company 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 a strong market presence across Australia in both government and commercial accounts. In addition the company develops and resells a range of unique SAP add on applications.
“The combined entity will be very balanced in terms of its geographical reach and sector strengths,” Dickinson says. “It 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, says the union of the two companies will build a larger and more competitive business. It will also create a route to market for Stream to introduce their 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.”
Dickinson says the acquisition is in line with the strategic growth plans of Oxygen’s parent company, UXC which aims to further enhance the already strong reputation and leadership in market share within the ERP Application market. The acquisition is conditional on mutual contractual requirements being met. Completion is expected by the end of August.
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