By Nathan Dukes
IT services company DWS have acquired recruiting firm Graeme V Jones (GVJ) for a cash payment of $800,000.
DWS said in a press statement the acquisition is part of their strategy to ‘acquire underperforming businesses’.
Danny Wallis, CEO of DWS, said that although the business has been performing poorly, with some attention it can reach its potential.
“Graeme Jones & associates has an excellent reputation in the SAP and Peoplesoft space and this is an area of the market which DWS has not actively pursued,” he said.
“We are optimistic that with some focused management attention we will be able to return the GVJ business to its previous highs (during 2007) when it was turning over some $29M.”
By comparison, in the coming year GVJ is expected to earn revenue of around $4M.
GVJ was founded in 1990 by Executive Chairman Mr Graeme Jones.
The Company has extensive PeopleSoft, SAP, and JD Edwards experience, and employs 17 billable staff in Sydney and Melbourne.
Mr Jones said the last 2 years had been tough, but looked forward to the opportunities that would rise from being part of the DWS Group.
Mr Jones said the cross selling opportunities would facilitate a rapid turn around for the business.
“We have been pursuing other opportunities which have distracted us from our core business activities during the last two years, but the opportunity to now re-build the consulting practice in conjunction with the DWS is very exciting and we are looking forward to a successful future as part of the DWS,” Jones said.
GVJ has a strong client base in both government and corporate sectors, which DWS says will complement their existing database of clients.
The acquisition will be effective from the 8th of October 2009.
Jones will remain with the company for the next two years to assist DWS rebuild the business.