Microsoft partners merge for midmarket critical mass

Two Microsoft channel partners Tuesday said they will merge to form a new company that will be among Microsoft's largest global partners serving midmarket business applications customers.

Tempe, Ariz., Tectura is joining with Copenhagen firm Aston Business Solutions A/S, in a deal backed by private investment firm Pequot Capital Management. Financial terms of the deal were not disclosed. The new company will continue doing business as Tectura but will shift its headquarters to San Mateo, Calif. Aston Business Solutions' Copenhagen office will become Tectura's European headquarters.

Tectura CEO Terry Petrzelka will remain the company's CEO, while Aston Business Solutions' CEO intends to depart after a transition period. The new Tectura will have 1,000 employees worldwide in 50 cities in Europe, the U.S., Australia and Canada. The company forecasts revenue of $150 million over the next year.

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Two Microsoft channel partners Tuesday said they will merge to form a new company that will be among Microsoft's largest global partners serving midmarket business applications customers.

Tempe, Ariz., Tectura is joining with Copenhagen firm Aston Business Solutions A/S, in a deal backed by private investment firm Pequot Capital Management. Financial terms of the deal were not disclosed. The new company will continue doing business as Tectura but will shift its headquarters to San Mateo, Calif. Aston Business Solutions' Copenhagen office will become Tectura's European headquarters.

Tectura CEO Terry Petrzelka will remain the company's CEO, while Aston Business Solutions' CEO intends to depart after a transition period. The new Tectura will have 1,000 employees worldwide in 50 cities in Europe, the U.S., Australia and Canada. The company forecasts revenue of $150 million over the next year.

Tectura specializes in working with products from the Microsoft Business Solutions business applications group. The newly expanded company says it will be Microsoft's largest partner within the Axapta and Navision ERP software lines, and a top partner around the Great Plains, Solomon and Microsoft CRM lines.

As Microsoft looks to its Business Solutions group to propel it into the ERP market, partnerships are a critical aspect of its growth plans. Business applications software requires more customization and services support than the products that are Microsoft's flagships, its operating system and desktop applications software.

Tectura has built around Microsoft's software tailored systems for a number of industries, including consumer packaged goods, manufacturing, aerospace, life sciences and healthcare. Anticipating rapid growth in the market for Microsoft's back-office software, Tectura said it aims to be a $500 million services business with a staff of 2,500 by 2007.

The IDG News Service is a Network World affiliate.