Worawut - stock.adobe.com

SAP channel consolidation continues as Codestone buys Clarivos

Deal will add more muscle to ERP, analytics and provide extra depth to the cloud services that the combined operation can offer

Consolidation has been a feature of the SAP channel as some of the vendor’s larger UK partners move to bolster their position.

Adding to the recent examples of Sapphire buying InCloud and Accenture picking up Edenhouse, cloud specialist Codestone has reached out for Clarivos.

Codestone, which offers SAP and Microsoft, will add more depth to its services offering, with the acquisition providing access to more SAP enterprise resource planning (ERP) and analytics services.

Acquiring businesses to gain access to their SAP Business ByDesign skills has been one of the factors in some other consolidation moves and it is echoed with this latest development in SAP’s channel.

The deal, the terms of which were not disclosed, will see Codestone gain access to more SAP Business ByDesign skills with a headcount of more than 70 people who have delivered over 350 ERP projects across Europe, the Middle East and Africa (EMEA). Clarivos is a SAP gold partner and is also at the top partner tiering with enterprise performance management (EPM) player CCH Tagetik.

Both firms are aimed at harnessing the power of the cloud to support customers looking to make transformative changes to their business. The addition of more ERP, analytics and digital skills will add greater depth to Codestone’s digital platform capabilities.

The channel players closed the deal earlier this week and the acquisition is expected to generate £10m in incremental revenue and £2m in incremental adjusted EBITDA over the next 12 months.

“This agreement complements our award-winning SAP ERP and Microsoft Cloud offerings and creates one of the most differentiated SAP services in the market,” said Jeremy Bucknell, co-founder and CEO of Codestone. “It is perfectly aligned with our customer-centric, cloud-first strategy and will drive greater focus on strategic execution and operational excellence to the group’s already significant value creation.”

Kirit Patel, executive director – strategy and execution at Clarivos, said the deal would bring it into an organisation with a wider market reach.

“Codestone’s multi-capability Microsoft credentials, cloud-hosting expertise and comprehensive support provides much in-demand services to our customers,” he said. “Our mid-market and large enterprise customers will benefit from more comprehensive ERP delivery, cloud and managed services from a pedigree organisation that is widely recognised in this space.”

The plan is for the Clarivos leadership team to come across with the deal and Patel will become director of mid-market and large enterprise and sit on the Codestone operational board.

The firms also pointed out that vendor partners would benefit from the combined businesses’ ability to offer an expanded focus and increased sales opportunities.

Read more on Enterprise Resource Management (ERP) Services