Shortly after receiving a $20 million influx of funding, Salt Lake City-based Salesforce partner Simplus announced the acquisition of Australian-based Sqware Peg.
The Series C funding round was led by Kensington-SV Global Innovations (KSV) with assistance from Savano Capital Partners, Salesforce Ventures, Cross Creek Advisors, EPIC Ventures, and University Growth Fund.
The money will be used to increase capacity across Simplus’ product and service offerings, as well as to help fund acquisitions, the company said.
Simplus: Salesforce Partner Acquisitions Explained
The first post-funding deal involves Sqware Peg. The deal accelerates Simplus’ expansion into the Asia-Pacific region and marks the company’s first international acquisition and sixth Salesforce consulting partner buyout since 2016, the company said.
“We have completed six acquisitions of complementary firms in the last two years,” said Ryan Westwood, CEO of Simplus. “As we look forward, we see acquisitions and future financing as playing a key role in strengthening our competitive positioning and international presence.”
Simplus previously acquired CirrusOne, a Salesforce and Oracle partner in May 2018. Earlier deals included $9.3 million in funding, and such buyouts as CRM Manager. BaldPeak, Basati and EDL Consulting.
Who Is Salesforce Partner Sqware Peg?
Sqware Peg has operated in the Australian market since 2004, focusing exclusively on the Salesforce Platform. The firm has offices in both Sydney and Melbourne and had around 50 employees at the time of the deal.
Westwood called Sqware Peg a pioneer in the Asia-Pacific region, saying:
“We are thrilled to work with the talented leadership of Sqware Peg and combine forces to further grow our presence and continue making an impact in the global Salesforce marketplace. We appreciate the continued support of Salesforce Ventures, who has been an incredible partner to both Sqware Peg and Simplus.”
Reid Meldrum, managing director of Sqware Peg, will receive a prominent stake in Simplus as part of the deal. “I am thankful for the opportunity I had almost four years ago to lead Sqware Peg through to this next phase of growth,” he said.
Simplus: The Salesforce Partner Funding
KSV says it was drawn to Simplus because of its strong management team and performance, along with its unique combination of high customer satisfaction and culture.
“Simplus enjoys high customer satisfaction and loyalty while maintaining a long history of exceptional performance and growth,” said Dan Gay, principal of KSV. “When you couple that with its coveted status as a Platinum Salesforce Partner and remarkable culture, we see a winning combination. Our new partnership will enable Simplus to attract additional talent and further develop its unique approach to delivering for customers and winning in the marketplace.”
Simplus, in turn, says it chose KSV to lead the funding round thanks to its expertise in global markets, M&A transactions, and “high-quality partnerships with companies in growth-stage businesses.”
Simplus is one of the largest CPQ (configure, price, quote) global technology providers, with more than 150 certified consultants and offices in the United States, Canada, Australia, and the Philippines.
The company completed its Series B round in December 2017, raising $9.3 million.
M&A activity involving Salesforce partners has looked strong in the last year or so. Among the mergers and acquisitions we’ve tracked:
- Infosys acquired Fluido, a Salesforce cloud consulting, implementation and training partner with reach across Europe.
- Cognizant Technology Solutions acquired SaaSfocus, a major Salesforce cloud consulting partner in the Asia-Pacific (APAC) region with operations in Australia and India.
- ScanSource acquired Canpango, an implementation and cloud consulting partner.
- FMT Consultants, a Microsoft and NetSuite partner, acquired Red Sky Solutions of Orange County, California in May 2018.
- Simplus in May 2018 acquired CirrusOne, a Salesforce and Oracle partner that offers consulting services for CPQ (configure, price, quote) and quote-to-cash solutions.
- Spaulding Ridge acquired Baun Consulting, a cloud CRM partner.
- Capgemini acquired Lyons Consulting Group, a Commerce Cloud partner.
- BV Investment Partners acquired control of Apps Associates, an IT services company.
- Simplus raised $9.3 million in Series B funding & acquired Salesforce partner CRM Manager.
- Silverline, a Salesforce platinum cloud consulting partner, attracted Pamlico Capital private equity investment for financial services, healthcare push.