 | |||
|
|
||
| |||
| |||
| |
|
Home > Domino News > OnX gains Momentum by acquiring Domino marketer |
| |
|
|
|
|
| Domino News: |
|
||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|
||||||||||||||||||||||||||||
OnX Inc. has completed a major move to establish its eastern Canadian presence by purchasing Quebec-based Momentum Business Systems, Inc., marketer of Lotus Domino applications. A Thornhill, Ontario-based company, OnX provides end-to-end e-business solutions to medium- and large-sized companies, as well as to public sector organizations. "Not only do we acquire what we think is an excellent set of skills and people, but it gives us national scale, so we now have a presence across Canada," said Rick Makos, chief operating officer of OnX.com. Momentum Business Systems (MBS) consists of two divisions. Its software division markets Lotus Domino applications, such as the popular Boomerang travel expense management application, which it creates and licenses. Its professional services division includes e-business solutions and corporate training. While the professional services division of MBS will be folded into OnX, there are bigger plans in the works for the Boomerang software division. "Besides OnX e-business services, they also have several companies which they are taking an investment position in or are incubating, and Boomerang will be added to that mix, and operated independently," said MBS president and co-founder Lorne Schwartz. Schwartz will become the president of the autonomous, yet-to-be named OnX Boomerang division, which he said is likely to be spun off as a wholly separate company within the next 24 months. The OnX incubation enterprise will remain in place, but will take the Momentum name. Joining OnX was a perfect fit for MBS, according to Schwartz. "We've been approached from many companies," he said. "My partner [Vice President of Professional Services Domenic Durante] and I said it would have to be at the right time, with the right offer, with the right company, and all of those things were right. "The real truth is that we needed to make a move to become bigger, better, and more efficient, and OnX was looking to expand their presence in eastern Canada. To me this was a marriage made in heaven. We were approached by half a dozen different companies in the past six months, but we couldn't have asked for a better deal," Schwartz said. OnX paid approximately $30 million in cash and stock for the acquisition, with $9 million contingent upon Momentum attainting certain revenue targets. Makos said one of the primary reasons OnX was interested in Momentum was Boomerang's untapped potential. "It's a real gem that needed some more incubation money, so it's been put into our incubation group to get some more resources and attention," Makos said. "I think certainly what we see there is the precursor of a fantastic product. Not only do we see expanding across platforms, I think the long-term plan is to add some other components as well, such as purchasing. In the long term I see I see a lot more there." Schwartz said it is unlikely that jobs will be lost due to the acquisition. "We re still hiring a lot of people," he said. "As the company expands, we'll end up hiring more rather than laying off anyone. We're still hiring gung ho!"
|
|
|
|
||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||
|
|
 |  |  | |  | |  | |  | |  | |  | |  | |
|
|
About Us | Contact Us | For Advertisers | For Business Partners | Site Index | RSS |
|
|
||
|
|||||||
