Columbus acquires software development company To-Increase

COPENHAGEN – Source: www.columbusit.com -- Columbus IT Partner announced today the acquisition of all the share capital of the Dutch software development company, To-Increase BV. This transaction will significantly strengthen Columbus IT industry solutions development unit and centralize all Columbus IP rights and R&D efforts across 22 countries.

It is a part of Columbus strategy to develop a global ISV (Independent Software Vendor) company, which will function together with the company's core consulting business. Acquisition of the Dutch company will make Columbus IT the biggest development house for Microsoft Dynamics worldwide providing customers with high quality global industry solutions based on Microsoft Dynamics AX.

To-Increase is an international company focused on developing add-on solutions for Microsoft Dynamics AX and Microsoft Dynamics NAV (Axapta and Navision) for more than 7 years. It is based on a 100% indirect sales model by distributing its solutions though more than 40 partners worldwide. To-Increase is a part of Microsoft Industry Builder Initiative and participates in Microsoft advisory boards for the next versions of Axapta 5.0 and Navision 5.0. It is a profitable organization with its main business focus in product development and partners support.


By this acquisition Columbus has bought a profitable software development business. The buy includes the transfer to Columbus IT of IP rights for all To-Increase industry, add-on and other solutions, partners channel, customer base, and professional team and expertise in building a software house.

As a result of this acquisition Columbus will be able to offer customers and partners a wide range of global industry, horizontal and add-on solutions certified by Microsoft. They will get solutions which are tailored to specific industries and accumulate worldwide best practices and supported by global teams, what will increase return on customer investments in Microsoft Dynamics implementation. Other Microsoft Dynamics (MBS) partners will get an opportunity to build a profitable consulting business by re-selling and implementing these industry solutions.

Columbus IT will introduce a new central ISV (Independent Software Vendor) division, based on To-Increase BV. This new division will be responsible for development of all vertical and horizontal solutions, partner channel development and support. Columbus local offices in 22 countries will keep the focus on implementation services and direct contacts with the customers.

The acquisition is another big step in aligning Columbus IT vertical strategy with Microsoft, whose vision is to have partners who develop industry expertise and specialize in development of global industry solutions. Columbus IT is being transferred into an industry focused company and is now responsible for development of several global industry solutions.

“This acquisition makes Columbus IT the largest global development houses for Microsoft Dynamics AX and the only Microsoft Partner in Europe responsible for two global industry solutions development as a part of Microsoft Industry Builder Initiative: one for Retail and another for Industrial Equipment Manufacturing segments. As the result of this deal, we expect a synergy effect in better coordinated R&D, distribution and support of add-on and industry solutions, as well as higher profitability for our consulting practice and faster profitable growth of our software division,” - says Vladislav Martynov, CEO Columbus IT Partner A/S.

The Industry Builder initiative has been launched by Microsoft in May with the purpose of involving the most experienced partners in developing Global Industry Solutions based on Microsoft Dynamics. In July 2005, Columbus signed a first Industry builder agreement with Microsoft and became responsible for developing a global solution for the Retail trade in Microsoft Dynamics AX (Microsoft Axapta). To-Increase has a similar Industry Builder agreement with Microsoft for the Industrial Equipment & Manufacturing (IEM) market.

The consideration for the shares of To-Increase BV is by way of a basic purchase sum of EUR 2.70m and a two year earn-out period with an upper threshold of EUR 2.8m. All payments are by way of shares in Columbus IT Partner A/S, which will be issued in maximum four tranches, all at market rates on the trading date prior to the due date.