Microsoft Dynamics 365 Partner Buyouts: DXC, Tribridge Deal Reinforces Trend
The acquisition also includes Tribridge affiliate company Concerto Cloud Services, a managed service provider (MSP) specializing in private, public and hybrid cloud products and services.
Financial terms of the deal were not disclosed.
Microsoft Dynamics 365 partners have attracted considerable M&A activity in recent months — and over the past two years or so. Somewhat similar deals in the Dynamics 365 partner ecosystem have included:
- Unit4 acquiring Assistance Software (April 2017)
- Columbus Global Acquiring Tridea (January 2017)
- Columbus Global Acquiring Cambridge Online Systems (December 2016)
- RSM US acquiring Junction Solutions (November 2015)
- HCL Technologies acquiring PowerObjects (October 2015)
- Sonata Software acquiring IBIS Inc (October 2015)
About DXC Technology
DXC Technology is the new name for the company formed in April after Computer Sciences Corp. (CSC) merged with the troubled Enterprise Services business unit of HP Enterprise.
Tribridge will become part of DXC Eclipse, the application, infrastructure and consulting business DXC bought in October 2015 for roughly $300 million, but it will operate independently and keep the Tribridge brand.
“The combination of Tribridge with DXC Eclipse significantly strengthens DXC’s role as a leading Microsoft Dynamics 365 systems integrator, greatly enhancing our ability to address client needs,” Mike Lawrie, DXC chairman, president and CEO, said in a statement. “This acquisition, the first since the formation of DXC Technology, fits with our vision of leading clients on their digital transformation journeys and aligns with our strategic growth objectives.”
Managed IT service provider Tribridge was founded in 1998 and has 740 employees across North America and Europe. It is one of the largest privately-owned companies in the Tampa, Florida area, and it has been expanding near that home base as of late, according to the Tampa Bay Business Journal.
A Microsoft Dynamics 365 partner since 2004, Tribridge sells the full suite of Dynamics 365, ERP and CRM business applications to mid-market and enterprise customers. It has been recognized as the Dynamics 365 Worldwide and U.S. Partner of the Year six times.
The company also sells proprietary software built on the Dynamics 365 CRM platform for markets including healthcare, justice and public safety. In a statement, DXC said the purchase of Tribridge will expand its offerings for customers in those industries, as well as consumer packaged goods and professional services.
Under the acquisition, which finalized July 5, Tribridge will be known as ‘Tribridge, a DXC Technology Company.’ Concerto Cloud Services will become DXC Concerto, also operating independently.
Newly-formed DXC Technology, based in Tysons, Virginia, has about 6,000 public and private sector clients across 70 countries. The company is a Microsoft Gold Partner, also selling Dynamics 365, ERP and CRM products, among many others.
Troubles and Wins
The former CSC was No. 379 on Fortune 500’s most recent list with $7.1 billion in revenue in 2016.
When DXC was formed, HP Enterprise retained half ownership.
Both CSC and HP’s Enterprise Services consulting unit faced some troubles prior to forming the newly-combined company, according to Business Insider.
CSC had layoffs, filed a lawsuit accusing one of its top executives of fraud, and paid $190 million to settle U.S. Securities and Exchange Commission (SEC) charges over how certain executives were doing the books, the business publication reported last year.
CSC’s latest financial results for the quarter ending March 31 reported an $187 million loss on $1.81 billion in revenue. Results for the quarter included $153 million in restructuring costs and $147 million for the merger transaction.
Enterprise Services had deep job cuts in the several years preceding the merger, laying off tens of thousands and offshoring more than half of the unit’s remaining jobs.
However, DXC scored some major deals this year with government entities, most notably a massive $394.2 million, multi-year contract with the South Australian government.