Acquisition Consolidates Two Market Leaders In The Project Based Solutions Market

Deltek announced on June 3rd that they would acquire Maconomy for  $72.7M ($3.39/share (DKK 20.50)).  Maconomy is a leading project based solutions (PBS) software company with ~35.6M in revenues (2009) based in Copenhagen, Denmark.  Deltek is a 265.8M revenue (2009) PBS software vendor based in Herndon, VA.   This acquisition is significant because the combined companies:

  • Improve geographic coverage. Maconomy employs over 220 employees with 600+ customers in 58 countries.  eltek reaches 12,000 customers around the world across its portfolio of product lines that includes Costpoint, GCS Premier, Vision, and its Enterprise Project Management suite. Deltek also offers govWin, an online network dedicated to solving common business problems for government contractors.

    Point of View (POV):
    Maconomy’s customers mostly originate from EMEA.  Less than 12% of Maconomy’s revenues come from the US.  Maconomy built good partnerships in Eastern Europe. South Africa, Canada, and India.  Meanwhile, Deltek has a strong base of business in the US public sector and was beginning to move towards greater international expansion.
  • Address a range of PBS vertical industries. Maconomy’s products focus on professional service organizations with about 46% of its revenues coming from consulting and 26% of its revenues coming from marcomm.  Deltek dominates the architecture and engineering space along with government contracting.  The company has shown success in key verticals such as construction services, public sector, and transportation services.

    POV:
    Deltek can boast that 80% of the Engineering News Record 2009 Top 500 Design Firms are customers.  Maconomy’s products X1 and PeoplePlanner demonstrate a strong professional services focus.  Together, they have an opportunity to expand into research organizations, legal services, and audit/tax firms.

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