SilverSun Technologies announced Thursday that its wholly owned subsidiary SWK Technologies, national technology solutions and services provider, signed a letter of intent to acquire ESC Software, an Arizona-based reseller of Sage Software and Acumatica applications.
While the terms of the transaction were not disclosed, the deal is expected to add more than $1.7 million in annual revenue that will be immediately accretive to SilverSun’s earnings.
Founded in 1989, ESC provides business management software for companies in the Southwest, along with services including pre-sales consulting, needs analysis, system review and design, implementation, training, support and strategic planning.
“ESC Software and its founder, Alan Hardy, have a tremendous reputation spanning several decades as a valued Sage business partner,” stated Mark Meller, CEO of SilverSun. “The company has a solid revenue stream and a strong, established customer base. This transaction further solidifies our position as one of the largest resellers of Sage Software in the United States. We continue to execute on our business plan to increase value for our shareholders by increasing profitable sales and acquiring companies and technologies.”
“This acquisition makes SWK Technologies a dynamic force with significant market presence in the Southwest,” stated SWK Technologies CEO Jeffrey D. Roth. “Further, the fact that both SWK and ESC have added Acumatica to their portfolios is an indicator that our business strategies are very much aligned. With our management talent, in-house expertise, and financial resources, we are confident that the combined companies will be able to accelerate sales and earnings growth. Our shared commitment to putting clients’ needs first ensures ESC Software’s client base will continue to receive superior service. We are very excited about our future prospects."
The transaction, which is subject to the signing of definitive agreements and customary closing conditions, is expected to close on or before April 30, 2014.