Outsourcers Ciber, AlphaNet Getting Hitched

In a deal that signals contraction among smaller tech consultancy players, Colorado-based Ciber, Inc. announced Monday it would pay
about $29 million to acquire rival AlphaNet Solutions .

Ciber, an IT services firm that specializes in system-monitoring and
disaster recovery business, said the deal would help spread its wings on the
East Coast, where AlphaNet is based and does the bulk of its business.

The New Jersey-based AlphaNet provides networking and IT consulting
services with the bulk of its business coming from East Coast clients. With
the acquisition, Ciber also gets a toehold in the reseller market for
networking equipment.

The acquisition arrives as larger IT services consultants such as IBM and HP, faced with sluggish spending by major corporations, are looking for a bigger slice of the small and medium-sized business market, which is putting more pressure on smaller IT players.

The cash and stock deal also marries two companies that offer enterprise
application design and operational process outsourcing. Ciber’s enterprise
offerings include consulting and support for software from SAP, PeopleSoft
and Oracle and the company collects revenues from data mining, Web
development and enterprise security consulting via its Enspherics
subsidiary.

Those services mesh with AlphaNet’s business in the areas of design and
installation of corporate networks.

Once the deal clears shareholder approval, Ciber’s existing offices in
New Jersey will be merged with AlphaNet’s operations under the direction of
Ciber’s Richard Erickson. Executive CP of AlphaNet Mark Perlstein will
remain with the combined firm along with senior vice president Don Zinn.