NTT DATA Services buys Vancouver-based Sierra Systems
Leading global IT consultancy NTT DATA Services has acquired Vancouver-based IT consulting firm Sierra Systems Group, the Canadian subsidiary of Sierra-Cedar Group. The transaction is slated to close by the end of this year.
Founded in 1966, Sierra Systems provides a full suite of advisory, systems development and integration, and application managed services, with strong support for Microsoft and Oracle software solutions. The IT services and management consulting firm employs about 700 professionals across Canada, with headquarters in Vancouver and nine further offices across BC, Alberta, Saskatchewan, Manitoba, Ontario, and Nova Scotia.
The firm is a subsidiary of Alpharetta, Georgia-based consulting and managed services firm Sierra-Cedar Group, which employs 900 professionals across the US, as well as hundreds of offshore employees though an Indian subsidiary.
The Canadian firm Sierra Systems has now been purchased by Plano, Texas-based NTT DATA Services, a division of Tokyo-based NTT DATA, a top-10 global business and IT services firm. NTT DATA provides business consulting, IT consulting & integration, and organizational change management services to clients from offices stretching across more than 50 countries. The company employs over 118,000 professionals, and has annual revenues in excess of US$14.6 billion.
The global firm was ranked the 8th largest worldwide IT services provider in 2017, based on market share, in a recent Gartner report. Within Canada, NTT DATA has over 900 employees, with offices in Halifax, Montreal, and Toronto.
The deal significantly expands NTT DATA’s Canadian footprint, adding 700 employees, while also broadening its geographical penetration across the Prairies and the West Coast. NTT DATA gains the capabilities of a firm with highly complementary strengths and culture, as well as Sierra’s long-term client relationships across industries – including healthcare and the public sector.
“Sierra Systems’ reputation as a trusted advisor in Canada is evidenced by the strength of their client relationships, many of which have spanned decades,” said Bob Pryor, CEO, NTT DATA Services. “With the addition of Sierra Systems’ talented team, we’ll expand our ability to deliver innovation and business outcomes to clients in Canada and extend our North American delivery capabilities. Growth prospects are very strong in Canada, so this is an attractive market as we continue to grow globally.”
NTT DATA will also strengthen its talent in core areas like Microsoft Dynamics, Oracle, and ServiceNow. Meanwhile, NTT DATA’s global capabilities and network will bring a broader portfolio of services in infrastructure, applications, and digital transformation to Sierra Systems’ existing clients.
“Joining the NTT DATA family is truly a perfect match for Sierra Systems that expands opportunities for both our clients and employees,” commented Pat Kaiser, Chief Operating Officer, Sierra Systems. “The alignment of our services and industries with an appreciation of our client relationships and culture underscores our commitment to meeting the unique needs of the Canadian marketplace.”
With the sale of Sierra Systems, US-based Sierra-Cedar will continue its primary focus on the US market. Sierra-Cedar was advised on the transaction by TM Capital, a New York-based investment bank.
