Two major application service providers specializing in vertical markets will become one later this month when Agilera Inc. acquires Applicast Inc., Agilera officials confirmed last week.
Agilera CEO Paul Rudolph said the company will acquire Applicast in a stock-for-stock transaction.
“It is technically called a merger, but its an acquisition,” Rudolph said, declining to give a dollar value for the deal.
Agilera specializes in retail, manufacturing and distribution, and financial services markets.
Applicast is a good partner, Rudolph said, because it expands Agileras presence to western United States, adds more vertical markets, improves its intellectual property and brings aboard coveted technical staff.
The combined company will have approximately 70 customers and 330 employees. Agileras Englewood, Colo., office will serve as headquarters, with Applicasts Menlo Park, Calif., location becoming the Western branch, officials said.
“They have very similar industry targets,” said analyst Amy Mizoras of International Data Corp., in Framingham, Mass. “Its easier to have their applications in one big bang rather than go out and establish individual relationships.”
According to a source close to the company, additional mergers or acquisitions may be in Agileras near future. Although he would not discuss such specifics, Rudolph said growth was part of Agileras plan since its formation in March.
“We knew that if there was an opportunity to expand either geographically or vertically or to add competency, we would take it,” he said.