Surebridge Acquires Transchannel
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Surebridge Inc., a Lexington, Mass.-based ASP that focuses on mid-market enterprises, took another step on its growth path today, announcing that it has acquired Transchannel Inc., an Atlanta-based ASP that manages and hosts PeopleSoft applications. Transchannel targets mid to large-size companies.
Two weeks ago, Surebridge announced that it was adding nine strategic alliances to build out its distribution channel (see Surebridge Goes on Partnering Spree).
Financial terms of the deal with Transchannel were not released. However, Surebridge did say that the transaction has been approved by the boards of directors and shareholders of both companies.
"The merging of Surebridge and Transchannel, both profitable companies, creates the single most profitable company in the industry targeting the mid-market. This will clearly strengthen the competitiveness and value proposition of Surebridge's application outsourcing services in a market where financial stability is a clear differentiator," said Peter J. Boni, chairman and CEO, Surebridge.
In August, Surebridge, a privately held company, reported that it had reached profitability (see Surebridge Finds Profits in Mid-market).
Under terms of the agreement, George Valentine, CEO Transchannel, will join Surebridge as the director of its Southeast PeopleSoft practice. "There is great synergy between the two companies."
Like Surebridge, Transchannel focuses on specific vertical industries manufacturing and distribution, financial services, healthcare and pharmaceutical, services, and publishing and media.
Surebridge is listed by ASPnews as a Top 20 Service Provider.
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