Advania has sold its ERP business in Norway to Nordic rival Columbus as it insttead focuses on infrastructure services, contact centre solutions and strengthening its position as an ISV in the real-estate sector.
The sale of the ERP business included the transfer of 45 Microsoft Dynamics AX staff. Columbus claims that it will gain 100 Microsoft Dynamics customers through the acquisition.
The agreed acquisition price is NOK 40m (€4.1m) paid through a working capital adjustment financed through Columbus' own funds. The boards of both companies approved the deal on 6 January.
Columbus is a DKK 1.9bn (€254.24m)-revenue business with 2,000 staff globally.
Advania, in CPI's recent Global Elite report, was identified as one of the fastest growing resellers in Europe.
The privately-owned firm's revenues grew by an impressive 60 per cent in 2017, and has forecast to hit SEK 4.5bn (€430m) in sales for full-year 2019.
Advania's Norwegian operations have been on an 18-month transformation away from solely being an ERP supplier based on Microsoft Dynamics 365.
It expanded its business in Norway to include hardware in September 2018 via its acquisition of online store Stepper, and bolstered the unit again in 2019 with another buy, this time of NOK 600m (€58.91m) insurance technology services reseller Itello.
Advania Norway CEO, Espen B. Hartz, said that the company was caught at a crossroads between pouring further investment into the ERP business to scale, or withdraw completely.
"The ERP-market is changing and consolidating. Hence ERP-suppliers need to grow and reach a certain capacity to manage clients of all sizes and complex projects," he said.
"Columbus has chosen that path while we are stepping away from our previous role as a general Microsoft Dynamics supplier.
"Instead, we are specialising in supplying IT infrastructure with services and solutions, hardware and software, contact centre and PMAx (an Advania independent software property management tool available on Microsoft AppSource)."
Hartz added that the divestmentwill be followed by further acquisitions in its infrastructure and contact centre businesses.
In the Nordics market, Advania isn't the only partner cutting out its ERP solutions.
Danish software giant EG sold off it Microsoft Dynamics 365 unit to US systems integrator DXC Technology in January last year.
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