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Hot M&A Target: Microsoft Dynamics Consulting Firms

Mergers and acquisitions within the Microsoft Dynamics partner ecosystem appear to be accelerating. The latest example: RSM US — which provides midmarket audit, tax and consulting services — is buying Junction Solutions, a national technology consulting firm focused on Microsoft Dynamics AX.

RSM will gain 200 ERP experts from Junction Solutions. Those ERP experts focus on such vertical markets as food and beverage, life sciences and retail, the two companies said. RSM will also gain key footholds in Atlanta, San Francisco, Denver and St. Louis, among other areas, the duo added.

Junction Solutions revenue was $52.3 million in 2014, a 44 percent increase over the three years prior, according to the annual Inc. 500 report. The deal is expected to close on Dec. 1, 2015. Financial terms were not announced.

Even Microsoft weighed in on the deal. Victor Morales, corporate VP, Microsoft Dynamics, said:

“The combination of RSM US and Junction Solutions, with their breadth, deep industry expertise and understanding of our flagship ERP solution Dynamics AX, will help our customers transform their businesses and spur new opportunities for growth.”

Microsoft Dynamics Partner M&A

Multiple Microsoft Dynamics channel partners have been acquired in recent months. Examples include:

1. HCL Technologies acquired PowerObjects in October for $46 million. PowerObjects had trailing 12-month revenues of approximately $37 million as of September 30, 2015. Over 250 PowerObjects employees joined HCL. PowerObjects is a professional services firm completely focused on providing service, support, education and add-ons for Microsoft Dynamics CRM. The company has won Microsoft’s ‘Partner of the Year’ award three of the last four years.

2. Sonata Software acquired IBIS Inc. for a reported $14 million or so. That deal allowed India-based Sonata to expand its U.S. footprint. IBIS is a two-time winner of Microsoft Dynamics Outstanding Partner of the United States Award, and a Worldwide Finalist for the Microsoft Dynamics AX Partner of the Year.

Are more Dynamics-style M&A deals coming? We’re watching.

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