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Technology Mergers and Acquisitions

Edgewater Buys Oracle Platinum Partner

Edgewater Technology has acquired M2 Dynamics Inc., an Oracle Platinum Partner focused on enterprise performance management (EPM) and business intelligence (BI). The deal is the latest in a growing list of M&A activity involving Oracle channel partners.

Edgewater paid $16.1 million in cash for M2. If the buyout performs well, Edgewater will pay incentives of up to $6.6 million over the next year or so, the companies said. ChannelE2E doesn’t know M2’s annual revenues or profits, so we haven’t been able to calculate the deal’s valuation.

Financing the Deal for Immediate ROI

Shirley Singleton

Shirley Singleton

To ink the deal, Edgewater used about $11.1 million of its own cash plus about $5.0 million from a newly amended credit facility with Citizens Bank, according to an SEC filing. (Check out the SEC filing for specifics on the credit facility’s interest rate and more.)

The M2 buyout will be “accretive” to Edgewater’s 2016 earnings — meaning that the deal’s ROI should be immediate as the combined companies pursue business analytics, EPM, BI and Big Data deals, according to Shirley Singleton, Edgewater’s chairman, president and CEO.

Even Oracle is praising the deal. The combined companies will “provide depth of expertise covering the full range of Enterprise Performance Management offerings across cloud and on-premises, and deliver value for Oracle customers,” according to a prepared statement from Hari Sankar, group vice president, product management, Oracle.

Oracle Partners Pursue M&A

This is the latest in a growing list of mergers and acquisitions involving Oracle channel partners.

Earlier this month, Emtec acquired Summit Technology, a managed and cloud services provider that has deep Oracle expertise. Emtec has swallowed at least three companies this year — Summit, Lucidity Consulting Group and Intelenex.

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