Avanade to Acquire Ascentium Microsoft Dynamics CRM Practice

* Reuters is not responsible for the content in this press release.

Fri Apr 23, 2010 11:11am EDT

  SEATTLE, WA, Apr 23 (MARKET WIRE) -- 
Avanade, a business technology service provider, today announced it has
signed a definitive agreement to acquire the Microsoft Dynamics CRM
assets of Ascentium Corporation and its wholly owned subsidiary,
Ascentium Federal, Inc. Approximately 90 Ascentium CRM professionals will
be offered employment at Avanade as part of the acquisition, most of them
located in Baltimore, Md., and Bellevue, Wash. Terms of the transaction
were not disclosed. 

    "Avanade's interest in this acquisition reflects our commitment to the
Microsoft Dynamics platform and its ability to help companies around the
world achieve powerful business results," said Adam Warby, CEO, Avanade.
"As we at Avanade celebrate our 10th anniversary, it is a fitting time to
emphasize our market leadership, commitment to and investment in the
business benefits the Microsoft platform delivers to our customers."

    This strategic acquisition is intended to bring together Avanade's strong
technology capabilities, global reach and Dynamics CRM expertise with
Ascentium's dedicated Dynamics CRM team and deep specialization. Upon
close of the deal, Avanade becomes a world leader in the provision of
dedicated Dynamics CRM services, offering customers more deployment
options, scalable systems and broad skill sets in CRM solutions. 

    "When Ascentium made the decision to refocus the company, we began to
look for a home for our Dynamics CRM practice that would mirror our
commitment to our customers and our people," said Mark Barrett, CEO,
Ascentium CRM practice. "We found both in Avanade. Avanade is known for
its expertise in Microsoft technologies; it also has a long record of
focusing on its customers and investing in its people."

    "Avanade and Ascentium are valued partners in delivering Microsoft
Dynamics CRM solutions to our customers and helping them get the most
from their investment," said Kirill Tatarinov, corporate vice president,
Microsoft Business Solutions at Microsoft. "Both companies bring unique
and powerful capabilities that demonstrate the real-world benefits of
Microsoft Dynamics."

    The traditional model for buying and managing IT systems is rapidly
changing. Enterprise software, such as CRM, is increasingly being
delivered as a cloud-based service. Avanade recently launched Avanade
Online Services (AOS), its software-as-a-services offering for Microsoft
enterprise solutions. Dynamics CRM is the first solution offered on AOS.
Avanade now is able to offer customers the power of choice -- whether to
deploy Dynamics CRM on their own internal IT systems or in the cloud as a
service through AOS.

    "The decision to acquire the assets of Ascentium's CRM practice is a
result of a strategic and deliberate look at how we can grow our business
in ways that provide maximum value to our enterprise customers," said
Aziz Virani, executive vice president, Global Technologies & Solutions,
Avanade. "Expanding our CRM reach will allow us to bring the benefit of
Dynamics CRM to more companies around the world, on-premise or as a
service." 

    In 2009, Ascentium was named the Microsoft Dynamics Outstanding Reseller
of the Year. That same year, Avanade was named to the 2009 President's
Club for Microsoft Dynamics(R) and to the Microsoft Dynamics Inner Circle.

    The acquisition is expected to be completed within 90 days, subject to
closing conditions.

    About Ascentium
 Ascentium The Experience Agency(TM) delivers unmatched
user experiences and innovative business solutions by fusing strategic
account planning, innovative emerging technologies and world-class
creative to create multichannel connections between consumers, brands and
businesses. With offices in Seattle, Portland, Los Angeles, and London,
Ascentium provides innovative, multi-channel, business impacting results
for some of the world's top brands. In 2009, Ascentium was singled out by
Forrester Research as the agency with the "highest client satisfaction"
on the Forrester Wave(TM) of Top Interactive Agencies.

    About Avanade 
 Avanade provides business technology services that
connect insight, innovation and expertise in Microsoft technologies to
help customers realize results. Avanade's services and solutions help
improve performance, productivity and sales for organizations in all
industries. The company applies Microsoft expertise from its global
network of consultants, drawing on the right mix of onshore, offshore and
nearshore skills, which together are designed to help deliver results
faster, at lower cost and with less risk. Avanade, which is majority
owned by Accenture, was founded in 2000 by Accenture and Microsoft
Corporation and serves customers in more than 24 countries worldwide with
more than 9,700 professionals. Additional information can be found at
www.avanade.com.

    Avanade and the Avanade logo are registered trademarks or trademarks of
Avanade Inc. Other product, service, or company names mentioned herein
are the trademarks or registered trademarks of their respective owners.
(R)2010 Avanade Inc. All Rights Reserved. 

    Forward-Looking Statements 

    Except for the historical information and discussions contained herein,
statements in this news release may constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of
1995. These statements involve a number of risks, uncertainties and other
factors that could cause actual results to differ materially from those
expressed or implied. 

    These include, without limitation, risks that: Avanade and Ascentium will
not be able to close the transaction in the time period anticipated, or
at all, which is dependent on the parties' ability to satisfy certain
closing conditions; the transaction might not achieve the anticipated
benefits for Avanade; Avanade's business could be negatively affected if
the company cannot expand and develop its services and solutions in
response to changes in technology and client demand; the management
consulting, systems integration and technology markets are highly
competitive and Avanade might not be able to compete effectively;
Avanade's business could be negatively affected by economic and political
conditions and the effects of these conditions on its clients' business
and levels of business activity; Avanade's work with government clients
exposes the company to additional risks inherent in the government
contracting process; clients may not be satisfied with Avanade's
services; Avanade could have liability or its reputation could be damaged
if it does not protect client data or information systems or if its
information systems are breached; Avanade's business could be negatively
affected by legal liability that results from providing its solutions or
services; Avanade's results could be adversely affected if its clients
terminate their contracts with the company; liabilities could arise if
subcontractors or other third parties with whom the company partners
cannot deliver their project contributions on time or at all; Avanade's
results of operations may be adversely affected by the rate of growth in
the use of technology in business and the type and level of technology
spending by its clients; Avanade's profitability may suffer if it is not
able to maintain favorable pricing rates and utilization rates or if the
company cannot control costs; Avanade's global operations are subject to
complex risks, some of which might be beyond its control; Avanade's
business may be adversely affected if it is unable to keep its supply of
skills, including those personnel currently employed by Ascentium, and
resources in balance with client demand; Avanade may be unable to achieve
its business objectives if the company cannot manage the organizational
challenges associated with the scope of its operations; Avanade has only
a limited ability to protect its intellectual property rights, and its
services or solutions could infringe on the rights of others or it could
lose its ability to use the intellectual property of others; Avanade's
ability to attract or retain business may depend on the company's
reputation in the marketplace; loss of the company's significant
corporate relationships with Accenture and Microsoft could reduce its
revenue and growth prospects; Avanade has a limited ability to set its
own independent strategies, and its business strategy and direction may
be dictated by Accenture's overall business strategy; Avanade relies on
Accenture for the majority of its revenue, and the loss of that revenue
would have a significant adverse impact on Avanade's results of
operations and may affect its ability to continue to operate; Avanade's
global delivery network relies on Accenture, and the loss of that network
would increase Avanade's operating expenses; Microsoft has certain
minority rights, and may exercise those rights to protect its own
interests, which may not align with Avanade's; and Avanade is committed
to using Microsoft-related technologies, and the company's inability to
use those technologies would adversely impact its results of operations. 

    Statements in this press release speak only as of the date they were
made, and Avanade undertakes no duty to update any forward-looking
statements made in this news release or to conform such statements to
actual results or changes in Avanade's expectations.

    

MEDIA CONTACTS:
Avanade: 
Charlie Zaragoza 
+1 (206) 239-5893
charlie.zaragoza@avanade.com 

Edelman: 
James Boike
+1 (206) 268-2213
James.Boike@edelman.com 

Copyright 2010, Market Wire, All rights reserved.

-0-
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.