By: Michael Novinson
DXC Technology made its first acquisition on Wednesday, purchasing Microsoft Dynamics 365 solution provider Tribridge and its managed cloud business Concerto Cloud Services.
Tysons, Va.-based DXC, No. 11 on the CRN Solution Provider (SP) 500, said its acquisition of Tampa, Fla.-based Tribridge, No. 165 on the CRN SP 500, will enhance DXC’s offerings in health care, state and local government, consumer packaged goods, and professional services. Tribridge employs 740 people and is a six-time Dynamics 365 Worldwide and U.S. Partner of the Year winner.
Tribridge will become part of DXC Eclipse, an IT application, infrastructure and consulting business purchased in October 2015 for roughly $300 million. Eclipse operates in Oceania and North America and employed some 3,000 people at the time of its acquisition.
“The combination of Tribridge with DXC Eclipse significantly strengthens DXC’s role as a leading Microsoft Dynamics 365 systems integrator, greatly enhancing our ability to address client needs,” Mike Lawrie, DXC chairman, president and CEO, said in a statement.
Tribridge offers mid-market and enterprise customers software services and cloud solutions in the areas of finance and operations, customer engagement and human capital management. The company’s proprietary Dynamics 365 software management focuses on the health care, justice, and public safety verticals.
“This acquisition reflects DXC’s commitment to that shared goal [of] helping companies connect their data sources, drive intelligent decisions and optimize business processes with Dynamics 365,” Judson Althoff, Microsoft’s executive vice president of worldwide commercial business, said in a statement.
Tribridge was one of just three companies selected in November 2011 to be a master VAR under the Microsoft Dynamics Master VAR program. This enabled small solution providers reselling Dynamics ERP applications to work directly with Tribridge rather than with Microsoft.
In addition to being a Dynamics 365 partner since 2004, Tribridge joined NetSuite’s solution provider program in 2015. The company will now be known as Tribridge, a DXC Technology company.
“Enterprises are constantly demanding end-to-end integration with hybrid-cloud platforms to rapidly develop, deploy, execute and protect next-generation applications,” Troy Richardson, DXC senior vice president and general manager enterprise and cloud applications, said in a statement. “The combined capabilities of DXC Eclipse and Tribridge offer clients a complete end-to-end solution.”
DXC’s stock is up $0.20 (0.26%) to $76.15 in trading Wednesday. The $26 billion, 170,000-employee company was formed in April through the merger of CSC with the Enterprise Services business of Hewlett Packard Enterprise. Financial terms of the Tribridge acquisition were not disclosed.
Through this deal, DXC will also gain access to Tribridge business unit Concerto Cloud Services, which provides advisory services and fully managed private, public and hybrid cloud offerings to clients and strategic channel partners in the mid-market. Tribridge launched Concerto in July 2011, and the business unit will now go to market as DXC Concerto.
“Concerto comes from a rich legacy of application expertise, and becoming part of DXC Technology’s mature hybrid cloud business is a natural evolution for our team,” Steve Terp, Concerto’s president, said in a statement. “This is a tremendous opportunity to provide organizations with innovative services on a broader and more global scale.”
Concerto makes most of its money through other solution providers. The company launched a four-tier channel program in 2014, and brings in between 81 percent and 90 percent of its overall revenue from indirect sales, according to the CRN 2017 Partner Program Guide.
Concerto has 80 North American channel partners enrolled in its cloud partner program, according to CRN’s 2016 Cloud Partner Program Guide. Concerto participated in an CRN’s Tech Disrupters Roundtable in August 2016, and was selected as one of the 20 Coolest Cloud Infrastructure Vendors in CRN’s 2017 Cloud 100.
Concerto has tripled its channel partnerships over the past year, Rochelle Coleman, Concerto’s director of marketing and partner strategy, told CRN in 2016. Over the next year, Concerto is looking to double its number of channel partners, improve its customer satisfaction rating, and secure multi-year contract renewals, Shannon DiBenedetto, Concerto’s vice president of customer experience, told CRN in 2016.