Acquisition Absoft Applexus Image credit https://pixabay.com/users/absolutvision-6158753/Applexus Technologies Inc, a global SAP services provider, has announced the acquisition of Absoft, a UK-based SAP implementation and managed services company. Founded in 2005, Applexus operates out of centres in North America, the UK and India. The acquisition will see it strengthen its UK operation significantly.

The Absoft team will lead the growth drive across the UK and Europe. As the company expands the number of consultants it can offer to over 500. Total staff will number more than 600 in the combined organisations. Absoft brings experts from across the SAP Technology stack into the larger organisation. It has customers in the public sector, Oil & Gas, Manufacturing, Transport & Rail and Food & Beverage sectors.

While the terms of the deal were not disclosed, Absoft achieved £6.617 million in revenue in fiscal 2023. With a gross profit of £2.205 million.

Ian Mechie, Founder and Chairman of Absoft, said, “The Absoft leadership team is delighted to take charge of driving growth for the combined entity in the UK and Europe. Our customers will now have access to a significantly wider range of services across advisory, implementation, and support services for S/4HANA, analytics, private & public cloud, HCM/SuccessFactors, SAP BTP, and other technologies. This also allows all our employees to continue to grow their skills and take forward all the good things we have built so far.”

Sam Mathew, CEO and Founder of Applexus (image credit - LinkedIn/Sam Mathew)
Sam Mathew, CEO and Founder of Applexus

Sam Mathew, CEO and Founder of Applexus commented, “We are thrilled to join forces with Absoft and grow together as one team. This acquisition aligns strongly with our overall growth strategy and helps us expand our presence in the UK and Europe, a key focus geography for us. Our strong cultural fit and shared values make us ideal partners.”

Combination strengthens technology

Combined with Applexus the enlarged firm will have an even wider set of expertise.

  • A comprehensive set of services across SAP S/4HANA, analytics, private & public cloud, HCM/SuccessFactors, SAP BTP, DATA, Field Logistics and other technologies.
  • Industry-aligned SAP solutions, S/4HANA implementation accelerators and services for customers in retail, fashion, consumer goods, oil & gas, manufacturing, rail, logistics, and the public sector.

One of the key reasons for the acquisition, beside the strength of the consulting arm that Absoft has, is the deal also includes DATAMA. DATAMA is an industry-agnostic, easily deployable Extract, Transform, and Load tool designed specifically for SAP data migration. Absoft’s DATAMA has been used to deliver selective data migration into a new SAP implementation for an acquisition in as little as six weeks. Right through to multi-year S/4HANA transformation programmes in multi-national organisations. This is a key challenge for SAP migrations.

… and SAP customer base

Absoft also brings a large number of customers across several industries. They include the Sunderland City Council, Dorset Council, Halliburton, ENI Norge, Hallmark, Pirelli, First, and Arriva. The acquisition will also strengthen the Absoft team in the UK with access to Applexus CeleRITE. This AI-powered platform automates the migration of code, configurations, data, and security for fast S/4HANA migrations. Applexus CeleRITE will complement the DATAMA solution, enabling the combined firm to complete transformations faster for customers.

With global capabilities, Applexus will also extend Absoft’s expertise further for existing customers. Applexus is a market leader in SAP Data & Analytics with expertise in SAP Datasphere, SAC, and best-in-class cloud analytics platforms. The company was also named as an aspirant company in the recent Everest Group SAP Business Applications Services Peak Matrix in 2023.

Keith Davidson, Managing Director at Absoft, concluded, “Together with Applexus, we are able to scale our industry and services footprint while adding complementary IP solutions. We can now offer 24/7 global services when our customers need it while continuing to provide the high-touch service we are known for.”

Enterprise Times: What does this mean

Another UK based channel partner is swallowed up to become part of a larger organisation. Applexus seems to intend for Absoft to become its launchpad for further growth in the UK and Europe. It will be interesting to see whether it can first retain the existing staff. And then expand organically into Europe or make further acquisitions.

In Absoft it has found a SAP partner that not only brings market share and additional customers, it also has complementary technology that will assist its customers in other regions. There is, however, no mention of roles for the Absoft leadership or how DATAMA will be developed in the future.

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