Deltek recently announced that it had reached an agreement to acquire Tip Technologies. Tip Technologies offers Quality Management software, Shop floor execution and Supplier Quality Management that is used by enterprises such as Lockheed Martin, Boeing and Qarbon Aerospace. It is a GSA contract holder and is already a Deltek partner. Founded in 1989 by Mike Miller, CEO, it is still privately owned.
The deal, once complete, will strengthen the Deltek portfolio across government contractors, aerospace & defense (A&D) and Engineer to Order (E2O) firms. Importantly, it will enable Deltek to have a greater influence on the product roadmap of Tip Technologies solutions. It will also give Tip Technologies access to the expertise that Deltek already has in those industries.
Mike Miller, Founder & CEO of TIP Technologies commented, “We are very excited to announce this new combination of Deltek and TIP Technologies. In 1989, this business was started with a specific focus of creating a fully integrated Quality Management System, designed to meet the needs of the complex manufacturing market.
“Together with our team, we’ve been able to accomplish that and so much more. By partnering with Deltek, we will be able to deepen our capabilities and provide more value to our customers.”
Enterprise Times also had the opportunity to discuss the acquisition with Warren Linscott, Chief Product Officer. He answered several questions about the acquisition. The deal is expected to close in Q3 of 2022 subject to closing conditions. Once the acquisition is complete, the software, employees and leadership will join Deltek. Though Linscott would not be drawn on the roles the senior leadership would have.
Taking the product forward
Tip Technologies solutions already integrate with Deltek Costpoint. They also integrate to other ERP solutions such as Microsoft Dynamics, Oracle and SAP. Will Deltek support and extend these integrations further?
“We will continue to support those integrations and look to leverage our new integration platform to deliver more integrations in the future. This is something we will be working together on to ensure that TIP Technologies solutions are easy to integrate with.”
With the Costpoint integration in place, how will Deltek extend the integrations to Deltek solutions? Linscott was slightly more evasive with his answer to this question.
He said: “Yes, there is an existing integration between TIP Technologies solutions and Deltek Costpoint. TIP Technologies has been a Deltek partner for more than 10 years and we have worked together to mature that integration and to ensure it delivers what our customers need for both on-premise and cloud deployments of our solutions.”
What is the near future roadmap that Deltek will invest in?
“After the transaction closes later in Q3, Deltek will announce its plans for how it will fold TIP Technologies into its product portfolio. Deltek plans on maintaining and investing in TIP Technologies products in the same pragmatic and thoughtful way we think about all of our products.
“The TIP Technologies quality assurance and shop floor execution solutions are perfectly in line with our strategy of investing in industry-specific solutions that support the project lifecycle. As a result we expect to build upon this great functional depth over time to deliver additional value to our customers.”
Why TIP Technologies?
Deltek’s President and CEO, Mike Corkery summarised saying: “For nearly forty years, Deltek has had a relentless focus on government contracting and powering our customers’ success. We’ve had a long-standing partnership with TIP Technologies for many years, and mutual customers who are already benefiting from our close integration. This acquisition is a natural evolution of our partnership, and will create a more effortless way for our customers to get the combined benefits of our collective solutions.
“With Deltek’s industry-leading offerings for accounting, manufacturing and supply chain management and TIP Technologies’ QA and MES expertise, we will provide the best solutions for Engineer to Order manufacturing companies – in addition to continuing partnerships with other ERP providers established by TIP Technologies. We look forward to closing this deal in the coming weeks and welcoming the TIP Technologies team to the Deltek family.”
When asked, Linscott expanded on this saying, “This acquisition will continue Deltek’s product and customer expansion in the government contracting and manufacturing space, which is a growing industry segment for Deltek.
“Together, Deltek and TIP Technologies will provide unmatched solutions and services to this market, while maintaining the highest standards for meeting FAR, DFARS, MMAS, quality management, cybersecurity, and other government compliance requirements.
“The TIP SFE solution expands our robust engineer-to-order manufacturing capabilities and helps Deltek expand digital transformation capabilities to the shop floor of our customers. Deltek is thrilled about the opportunity to have the TIP Technologies team join our organization!“
Enterprise Times: What does this mean?
Sometimes buying a partner makes sense. It was perhaps seeing the solutions integrated so well at Qarbon Aerospace that provided the impetus for Deltek. The seamless integration between Tip Technologies and Deltek solution showed that together the two companies had something remarkable.
Pete Wick, CEO of Qarbon Aerospace noted, “The success of this project is a direct result of outstanding teamwork, the coming together of the best talent in the business, a highly disciplined project management plan and a work ethic and commitment from the combined team that will never be surpassed. Congratulations and thank you to the Qarbon Aerospace team, and our partners, including Deltek and TIP Technologies. This is an outstanding accomplishment that could only be achieved by a world-class group of people.”
Once acquired Deltek will be able to provide greater resources to Tip Technologies. It can also create deeper integrations to its existing solutions. It will be interesting to see how the Tip Technologies solutions improve their integration with Oracle Fusion and S/4HANA.
Once completed, Deltek will have a powerful solution to go to market with, and it will be interesting to see which vendors it now aims to compete with in the A&D space.
