Sofigate acquires Csolutor and becomes a major Salesforce and Oracle partner
Sofigate continues to execute its growth strategy by acquiring Csolutor, an expert in business solutions consulting. This transaction follows Sofigate’s recent acquisition of Headstart, which was announced in January 2018. Headstart and Csolutor will be merged to create Sofigate’s new Business Technologies business area, with 20 million euros of revenue. Sofigate sees an opportunity to multiply the revenue of the acquired businesses in the coming years.
The acquisitions of Headstart and Csolutor reflect Sofigate’s growth strategy to invest 50 million euros in corporate acquisitions before 2020. The new Business Technologies business area focuses on cloud-based business solutions and has strong expertise in SAP, Salesforce and Oracle, including NetSuite, technologies.
Sofigate CEO Sami Karkkila comments on the business rationale as follows: “The Nordic market has a strong demand for companies which can package agile technology solutions and transformation capabilities. Business technology is evolving at an unprecedented pace. Currently more and more companies want to reap the full business benefits of their investments in platforms such as Salesforce. To build and achieve the sustainable competitive edge, you need to develop business with technology solutions under one umbrella. This is Sofigate’s mission statement and core competence”.
Csolutor was founded in 2002 and has achieved strong growth – in the last seven years the company has multiplied its revenues to reach 7 million euros.
Market disruption ahead: Digital development and IT to merge
The traditional view has perceived agile digital development and business-critical IT as separate entities. Sofigate considers this model and way of thinking to be outdated and urges companies to view all technology as a single tool designed to serve the underlying business needs.
“Many companies are currently focused on digital development with such intensity that their core business solutions are about to fall by the wayside. If their business solutions groundwork is not completed properly, they will not be able to reap the full benefits of digital transformation. This is why the coming years will be an era of system renewals where speed and agility are the key. By combining Sofigate’s professionalism in leading change with expertise in technology solutions, we will be able to reach business goals, stay on schedule and on budget – and even exceed expectations,” says Pasi Mantila, Head of Sofigate Business Technologies business area.
“On one hand, a company’s digital development leads to nothing without utilizing the organization’s core solutions and data. And on the other hand, the core cannot be turned into a competitive business edge without a digital interface. Both are essential, and both need to be managed systematically. This is what we call Business Technology”, Mantila continues.
After the Csolutor acquisition, Sofigate employs 520 employees and has a pro forma revenue of over 80 million euros. Sofigate’s goal is to achieve a revenue of 150–200 million euros by 2020, which means employing over new 1000 Sofigators.