Canadian T&E Reporting Vendors Consolidate

Toronto-based expense reporting system vendor Necho Systems Corp. today announced it agreed to buy, with cash, Acceleron Inc., best known for its Lotus Notes-based Boomerang expense management system.

Montreal-based OnX Inc., one of Canada's largest IT services providers, had been shopping its Acceleron subsidiary for more than six months and recently came to terms with Necho for a sum that will not be disclosed until after the close of the deal, expected within two weeks.

The agreement calls for Acceleron to be operated as a business unit of Necho, but Boomerang users should see "business as usual," according to a Necho news statement. "We will bring another option to those who may opt to not utilize Notes across everything they're doing, and one or two of their clients had said they were reconsidering Notes," Necho president Scott Anderson told BTN today.

While most of each company's functions will remain separate, including sales and marketing, Anderson said Necho will run some administrative duties for both. "At some point, a combined sales organization could sell both products, but not for at least the next year," he said. According to Anderson, the acquisition also will strengthen both companies' respective positions in Europe, where Necho shortly will announce a new expansion plan. He said Necho may make additional cash acquisitions over the next six to nine months.

The deal nearly doubles Necho's client base to more than 200. Customers now include Bayer, PepsiCo. and Procter and Gamble, although Necho is focused on midmarket companies with between a few hundred and 10,000 users.