Irish software company System Dynamics has bought out one of its rivals, Connect Business Solutions, a division of Connect Global Solutions, for an estimated €1 million in cash.
The deal, announced yesterday, will increase System Dynamics's revenue and position it as the largest supplier of software solutions and products in its marketplace, according to the company. The managing director of System Dynamics, Mr Tony McGuire, claims the acquisition will boost the company's turnover to €15 million next year, compared with the €8 million recorded last year.
System Dynamics, which was bought out by the current management team from a British company in 1996, has pursued an aggressive expansion programme over the past three years.
Mr McGuire indicated that yesterday's purchase would be followed by another acquisition at the end of the year. He said the sale price, understood to be within 10 per cent either side of €1 million, accurately reflected current market sentiment.
Connect Business Solutions had a turnover last year of €3.3 million and specialises in providing e-business solutions.
Mr McGuire stressed this latest purchase was part of System Dynamics's growth strategy. "It is easy to overstretch but we're not going out and buying anything. We're only buying those companies that operate in our core business."
