The two Toronto-based firms will be merged after the deal, designed to compete in the growing cloud-services market.
Toronto-based cloud software provider NexJ Systems Inc. has acquired Broadstreet Data Solutions Inc. for $8.2 million, it announced today.
NexJ has been highlighted in the past year for its rapid revenue growth, topping the Profit 200 list in June for growing its revenues from $200,000 in 2006 to more than $30 million in 2011. The company sells a customer relationship management (CRM) software accessed via the Web. It targets its software for the financial services, insurance, and healthcare industries.
Broadstreet Data has headquarters in Toronto and Atlanta, and specializes in data governance and management. It markets solutions for business intelligence, mobile device management, analytics, and training on its Web site. The firm’s customers include CIBC, Research in Motion, Manulife, Labatt, GlaxoSmithKline, Tim Horton’s, Yellow Pages and departments of the federal government.
In a press release, NexJ CEO William Tatham praises Broadstreet Data for its profitability. The acquisition will broaden NexJ’s portfolio and set it apart from competitors, he says. Broadstreet Data’s president, Tim Stanley, will be taking the role of senior vice-president of global sales.
The move could help NexJ compete in what many analysts expect to be a growing market over the next five years. Big data services, in which businesses are aided in decision-making by data algorithms that can analyze mass amounts of information (often unstructured) in real-time or on-demand, are expected to become more popular. With a strong ability to manage data, NexJ could benefit from that.
On closing of the deal, NexJ paid $3.2 million and issued 527,905 shares to Broadstreet Data.