IT services provider Conclusion acquired sector counterpart myBrand last summer. It is the largest acquisition in the company’s history. While acquisitions form part of Conclusion’s buy and build strategy, CEO Engbert Verkoren is particularly enthusiastic about this acquisition: ‘It’s been less than six weeks since the official closing and we’re already receiving the first joint projects from new clients.’
‘We use this term to express that we are a collection of 22 different companies, each of which adds value to the business transformation and IT domain both on its own and, above all, in interconnection with the other companies in the ecosystem. The term ecosystem also optimally encapsulates the dynamics that characterise Conclusion: every company in general and IT companies in particular have to continually reinvent themselves. We do our absolute best to remain in the centre of the lifecycle so that we can grow in tandem with our clients’ business and continue to meet their continually changing demands. It’s also essential given the fact that we don’t carry out many one-off projects. Our strength lies in entering into long-term relationships and assuming full responsibility for the business-critical processes of our clients in sectors including public transport, public safety and healthcare in the Netherlands. Client needs and social relevance are at the heart of everything we think and do.’
‘We naturally focus first and foremost on organic growth. But we also regularly conduct a white or weak spot analysis, which entails identifying activities that are still lacking in our portfolio or activities that haven’t been adequately developed. These are activities that we believe we need in order to provide our clients with even better service. This is incidentally something NPM Capital has actively encouraged us to do and has helped us tremendously with in recent years. When you identify a weak spot, you can go in one of two directions. Either you decide to fill the gap on your own, which inevitably gives rise to the question: Are we still on time and can we recruit enough people in the market who can do this for us? Or you acquire a company that already has the desired expertise so you can accelerate the process of addressing the weak spot. While we take both directions depending on the circumstances, the second option was the most attractive in the case of myBrand.’
‘That’s right. This development is prompted by the fact that supplier SAP introduced a completely new version of their software to the market a while back. It’s much more flexible and in line with the requirements of today. At the same time the majority of the mid-market we serve still uses the older SAP software. In short: the ‘old’ SAP world has to be brought into the ‘new’ SAP world by 2025. myBrand is the only company in the Netherlands that has gained a concrete track record in this field – experience we didn’t have until now. Clients expressly ask for this expertise and we can consequently now offer it.’
‘Conclusion Xtensional now forms an additional location of myBrand and Jan Riksen, the Director of Conclusion Xtensional, is joining the myBrand management team. Seger Theuns, General Managing Director of myBrand, will remain in his current role. So we continue to serve the market through one SAP unit.’
“myBrand was on our wish list and we made contact with its management through one of our external advisers. We then found out that their investor wanted to exit the company for reasons of their own. We were in turn on the shortlist of companies of which myBrand would like to become a part. Things don’t always run smoothly, but this was a perfect fit – thanks in part to the efforts of NPM Capital of course.’
‘Actually the opposite was true: myBrand and Conclusion are a perfect match when it comes to DNA. myBrand already preferred to assume responsibility for the long-term management of the client applications through an own data center. This means we have the same approach and can optimally support them in this regard. So they can focus even more on their core business, such as migrating large companies to a new SAP environment. But I should mention that this isn’t the only reason why I’m very enthusiastic about this acquisition. myBrand is also highly attractive because their clientele is very complementary to that of Conclusion. We operate in totally different markets and are consequently able to really support each other in relation to existing and new clients. And the great thing is: the market recognises the strength of the combination very clearly. It’s been less than six weeks since the official closing and we’re already receiving the first joint projects.’