ParenteBeard recently announced to its clients that it is closing its two-decade old technology practice, ParenteBeard Technology, effective this Friday November 29.
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The practice focused predominantly on serving nonprofit organizations and represented Serenic Software and Microsoft Dynamics NAV products. The firm informed its clients recently via phone calls and email that the practice would be closing and that they would continue to be supported by Serenic and “two leading software-focused CPA firms,” according to a ParenteBeard spokesperson.
In a statement, the spokesperson said that the decision to shutter the practice was “based on thorough assessment of prevailing market conditions for the accounting software sales and support practice and current and long-term strategic business objectives.”
The firm declined to offer further details, however a source close to the matter claimed that two members of the technology practice are staying with ParenteBeard to work on the firm’s internal technology needs, while the remaining staff “are going independent” or over to knk Group – a German-based Dynamics partner and software developer.
The knk Group website indicated that it had purchased the Microsoft Dynamics NAV practice of ParenteBeard Technology for an undisclosed sum, effectively expanding its U.S. operations. The company has U.S. offices in Portland, Ore. and Moutainside, N.J.
As part of the knk Group the division in Wilkes-Barre, Pa. will continue offering “different Microsoft Dynamics solutions” such as nonprofit and government entities, project accounting and services and general business, according to an announcement on the knk website.
“The decision was made on a strategic perspective and we are looking forward to successful IT-projects in the U.S. and would like to give a warm welcome to all customers of former ParenteBeard Technology,” knk Group chief executive Knut Nicholas Krause said in a statement.
As for the Serenic business, the company said it is likely transitioning approximately 15 organizations to “firms who have been identified as potential candidates to begin supporting some of these customers,” though no formal agreements have been reached.
“Serenic has been working closely with ParenteBeard executives to ensure a smooth transition for their Serenic Navigator customers. The plan going forward is that each former ParenteBeard customer will begin receiving support and services from Serenic’s own team of consultants or begin working with another Serenic certified partner, depending on the customer’s geography, needs and preferences,” said Serenic’s director of global channel sales James Romero. “ParenteBeard has been a long-time partner of Serenic Software and their customers have benefitted from a high level of expertise and service quality from the ParenteBeard team. Serenic is committed to ensuring these customers continue to receive that same level of support and assistance going forward.”