Emtec, an international IT consulting firm, has acquired Summit Technology, a managed services firm with deep expertise in healthcare and Oracle cloud applications. And it sounds like Emtec is looking to make additional acquisitions in four key market segments going forward.
Emtec specializes in the "the entire IT lifecycle" -- including consulting through packaged applications, application oursourcing, cloud technologies, infrastructure and a branded managed service called ClearCare.
Summit Technology, meanwhile, is a healthcare consulting and managed services firm, specializing in Oracle’s HCM, ERP and Cloud applications.
Emtec, led by President Sunil Misra, confirmed the Summit acquisition on December 3. Summit's management team, led by CEO Carl Hunt, is now part of Emtec's Global Services group. Financial details were not disclosed.
Emtec: Buying Up Oracle, Managed Services, Cloud Expertise
Emtec has a clear strategic acquisition strategy. Among the key priorities: Gaining early mover advantage in the Oracle Cloud applications market. Toward that end, the company has made three key acquisitions: Summit, Lucidity Consulting Group and Intelenex.
Lucidity specializes in advisory, integration and managed services across utilities, manufacturing and distribution. Intelenex has managed more than 50 Oracle Fusion customer implementations.
Emtec has been funding buyouts from such backers as NewSpring Capital, MB Financial and Star Mountain Capital.
Additional Emtec Acquisition Targets
Emtec sounds like it remains in the market for additional M&A deals. According to Emtec, strategic acquisition targets must have:
- High growth potential;
- Strong client relationships;
- Strong management team willing to grow with Emtec; and
- History of profits or clear path to profits within one year.
Emtec targets four IT market segments for potential acquisitions. They include:
- Emerging technology companies that specialize in cloud migrations, mobile and analytics, with a path to profitability within one to two years.
- Enterprise application technologies, particularly Oracle partners with a minimum of $3 million in EBITDA.
- Application development and managed services with a minimum EBITDA of $4 million.
- Infrastructure and managed services with a minimum EBITDA of $5 million.
ChannelE2E is seeking additional details about Emtec's M&A strategy and the Summit deal. We'll update this article if/when additional details emerge.
