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RealTime IT News

Breakaway Solutions Acquires Irish E-Business Firm

[London, ENGLAND] Massachusetts-based Breakaway Solutions, which calls itself a "Full Service Provider" (FSP) of strategy, implementation and hosting services, announced Wednesday its acquisition of Irish Internet development firm Zartis Limited.

With 40 employees, Zartis significantly increases Breakaway's European presence and its acquisition is the first step in a major drive by Breakaway to increase its business in Europe.

"We already have a number of clients in Europe and this acquisition will help us to serve those clients as well as capitalize on the remarkable growth in demand for growing enterprise e-services and application hosting in the years to come," said Gordon Brooks, president and chief executive of Breakaway Solutions.

Zartis will become the first European Solutions Center for Breakaway. It will serve such clients as EMETRA, eumedIX, and GoIndustry, while also helping Breakaway expand its e-commerce services in the fast-growing European market.

John Dennehy, chief executive of Zartis, said he was convinced that selling the company to Breakaway was the right move, as it was an opportunity to bring the Full Service Provider model to all of Europe.

There are clearly some benefits to be derived from the one-stop, full service concept, although some consultants may object that no single company can offer the highest quality services right across the spectrum, from business strategy through to hosting.

Breakaway Solutions has, however, enjoyed considerable success with its approach, opening 11 application hosting facilities in North America, Europe, Asia and Australia and a network of offices across the U.S., in the U.K. and now in Dublin.

Breakaway is said to have considered more than 100 European e-business service companies as possible acquisition targets before settling on Zartis. Factors included the low labor costs in Ireland, relatively low taxes in comparison to mainland Europe, and access to a highly skilled workforce.

Another factor was the fact that Zartis has a promising wireless practice that includes projects with Formus Broadband Communications and Irishabroad.com.

Terms of the acquisition were not disclosed.