companies said the deal included an undisclosed amount of cash as well as a $1-million two-year transferable Convertible Note and a common share purchase. Sirius, which is based in Ottawa, will be merged with Treklogic’s local office under the brand InBusiness Solutions Inc. but will eventually be integrated into one national brand, named after its Brainhunter software platform.
TrekLogic, which started out about two years ago under the name Red Lantern, aims to be a full-service recruiting firm for the IT industry, according to chief executive John McKimm. The purchase of Sirius will be a major step towards that goal, he said.
“”They have a substantial Ottawa business. It takes sales to more than $40 million,”” he said. “”We know a lot of the same clients, and they have some very good people.””
The two principals at Sirius are leaving the company, McKimm added. The founder of the company, Ken Parker, is planning to retire but will assist the transition in a consulting capacity, he said. Parker was not available for comment at press time.
Whereas TrekLogic and Brainhunter offer a human capital management platform that includes everything from back-office systems to a job board, Sirius has traditionally played more of a strategic consulting role. Last summer, for example, Sirius won a contract with Montreal’s CGI Group to support the Department of National Defence’s pay and pension system worth more than $10 million over five years.
McKimm said TrekLogic’s acquisition days aren’t over. The company is already furthering its expansion in Alberta, for example.
“”We see additional opportunities, particularly in the Toronto area,”” he said. “”There isn’t a lot more we’re going to do in Ottawa . . . maybe one more (purchase) and that will be about it.””
Though the IT industry has suffered through significant downsizing over the last three years, the outlook for hiring is bright in 2004, according to H.R. consulting firm The Wynford Group. In a presentation to the Canadian Advanced Technology Alliance last week, Wynford Group president Gail Evans discussed the results of an industry survey which showed an increased emphasis on the attraction and retention of technical expertise.
“”There have been reductions, but they haven’t been nearly as much as there were in the United States,”” she said, noting that almost a quarter of those surveyed also said they plan to increase training opportunities for those hired.
McKimm agreed. “”It’s been very good for us,”” he said. “”You always have challenges in growing and building a business and making sure you keep good people. Our business is people, right? So that’s our biggest challenge.””
TrekLogic last year brought the IT contracting business of Toronto-based ThinkPath Inc.