Parsippany, N.J.-based software company CyberShift last week acquired Toronto-based expense reporting provider Necho Systems for an undisclosed sum. After years of merger and acquisition inactivity in the expense management market, the move follows Golden Gate Capital's purchase of Geac Computer Corp.—the Canada-based software provider and acquirer of expense reporting company Extensity.
CyberShift, which offers Web-based products, including time-, attendance-, labor- and other workforce-management software, said it will continue to support Necho customers, who can expect modifications to the look of Necho and integration with CyberShift tools. "Necho Systems will continue as a standalone application and CyberShift will integrate with the front-end portal, so customers with software licenses will have a similar look and feel," Robert Farina, CyberShift's CEO, told BTN via e-mail last week.
Although many expense management companies have opted to offer Web- and subscription-based software and services, Necho for years also supported licensed software, similar to CyberShift. "CyberShift and Necho share similar client profiles, compatible geographic coverage and completely compatible technology architectures with proven capabilities for both in-house and software-as-a-service deployment models," CyberShift said in a statement.
Farina said, "The Necho office will remain in Toronto with all headquarters functions now taking place in the CyberShift office in New Jersey." Meanwhile, "Most of Necho's senior management team did not come over to CyberShift," he said. "However, key Necho departments like customer support, product development and professional services are still intact."
Necho in 1997 launched as a pure-play expense management company and has garnered such customers as American Electric Power, Enbridge and Loomis Sayles. Steve Quincel, manager of employee expenses for American Electric Power, said Necho and CyberShift reached out to his company weeks ago to notify him of the change. "The CyberShift folks "seem genuinely enthusiastic about this deal and furthering product development."