I am pretty excited by the news of Acumatica’s acquisition by EQT.
I have seen some concern expressed by a few people in theVAR community. However, most of those don’t have direct experience within the Acumatica channel. Others appear to equate the purchase with past acquisitions of other ERP system by ERP aggregators and consolidators, some of which have not always worked well.
In the case of Acumatica and EQT, I think this is more like the transaction with Accel-KKR back in June of 2018. As an active Acumatica partner, I can tell you that Acumatica made great use of those investments! They showed up quickly in the form of huge strides in product development and improvements in the two versions released after the transaction.
If everything I have read regarding EQT’s intentions forAcumatica, the future just got even brighter for the customer base and the VARchannel. The Acumatica product complements well from a market position with IFS, EQT’s other ERP solution. IFS provides software for companies with revenues at $200 million or more. That leaves an enormous market potential for Acumaticain their sweet spot of $200 million and below. From a global market perspective, IFS is very strong in markets that Acumatica can leverage while helping IFS gain a stronger presence in North America.
For an operational comparison, IFS serves more than twice the number of customers as Acumatica and has more than 12 times as many employees. This strongly hints at two entirely different business models.
The ink isn’t even dry on the contracts, so we will all be watching closely to see how things play out.