Ovum, a provider of research, advisory and consulting services in the global ICT (Information, Communication and Technology) sector has announced the acquisition of Summit Strategies, a US-based IT research business.
Chris Dines, Chief Executive Officer of Ovum, said, "This acquisition is in line with our stated strategy of mixed organic and inorganic growth. Summit Strategies brings to us expertise and products in an important and growing area of the IT market. It allows us to develop a stronger relationship with blue-chip IT vendor customers."
The offerings of Summit Strategies are complementary to those of Ovum and fill a gap in the area of utility computing.
This is the first acquisition made by Ovum since its IPO in March 2006, and is in line with its stated growth strategy to build the business and expand its product offering and expertise both organically and through the acquisition of specialist, high quality businesses.
Headquartered in Boston, USA, Summit Strategies is a research, advisory and consulting group focused on the disruptive changes that affect IT vendors' market, channel and competitive strategies.
Summit Strategies, which generated turnover of US$1.9 million for the year ended 31 December 2005, has an impressive client base of blue-chip IT companies including IBM, HP, and Microsoft. The company has been advising the majority of its clients for more than 10 years.
The acquisition will be satisfied by a total consideration of approximately US$1.2 million, which has been satisfied by the issue of 47041 ordinary shares in the company with the balance being paid in cash. The acquisition is expected to be earnings enhancing in the next financial year once the integration of the business has been completed.
All the analysts of Summit Strategies will be retained by Ovum and will be supported by Ovum's analyst, customer support and sales teams.