Pivot Technology Solutions (TSX-V: PTG) said today it’s acquiring Ottawa-based TeraMach Technologies Inc., a local IT services firm with revenues of $100 million.
TeraMach was founded in 1996 but has seen strong growth in recent years. In addition to landing a series of government contracts with the Ontario government and the Canadian Revenue Agency, TeraMach successfully entered the cloud-computing space in 2009 and doubled its revenues three years later.
In 2012, TeraMach was named one of Ottawa’s fastest growing companies.
"Joining Pivot is strategic to us as it will enable TeraMach to offer more services as a larger, more resourceful and certainly more competitive enterprise," Hunter Li, TeraMach's co-founder and CEO, said in a statement. "We see this as a catalyst to grow to the next level as a differentiated IT provider and we're particularly excited about the services portfolio approach that Pivot is developing.”
Mr. Li will remain on as president of TeraMach, which will keep its name under the brand TeraMach, a Pivot Company.
Pivot has offices across North America. It designs, sells, integrates and supports IT solutions, including data center transformation, collaboration, cloud computing, end-user compute, security and networking.
In 2015, the company posted total revenues of $1.5 billion, up from $1.4 billion a year earlier. Profits were down in 2015, however, falling to $3.2 million from $4.3 million in 2014.
Terms of the all-cash deal were not disclosed.