Colorado Springs-based database management provider Xtivia Inc. has acquired a St. Louis company specializing in customer relationship management and business intelligence that Xtivia officials believe will boost revenue by about 20 percent this year.
Strategic Sales Systems Inc. and its 20 employees - including founder Sean Mohan - will remain in the St. Louis area, but the transaction will allow both companies to market their products to each other's customers and generate additional revenue, said Dennis Robinson, Xtivia's CEO.
Xtivia hopes to make another acquisition by year's end as part of plans to grow by expanding its existing operations and purchasing other companies, he said. However, no potential purchase targets have been identified, he said.
Xtivia management approached several business brokers last year seeking potential acquisitions and selected Strategic Sales Systems "as the best fit among three or four opportunities" since the two companies have many clients in common, Robinson said.
The deal was completed Dec. 17, but not made public until Thursday so Strategic Sales Systems could notify customers.
Xtivia acquired Strategic Sales Systems for stock and future payments based on revenue and earnings, but he declined to disclose the price.
"Combining the respective strengths of Xtivia and SSS accelerates our business plan and is a significant step toward the goal of transforming business through the use of information technology," Robinson said in a press release on the deal issued Thursday.
The acquisition is expected to boost Xtivia's revenue from about $25 million last year to $29 million this year, Robinson said.
Xtivia, owned by Israeli information technology company Matrix, employs about 30 in Colorado Springs and 120 others at offices in Denver; New York; Austin, Texas; and Edison, N.J.
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