KPMG acquires IT solutions company Adoxio
KPMG Canada has acquired digital customer relationship management (CRM) consultancy Adoxio, in a deal which was finalized on May 16. The 60-person firm, which specializes in the implementation of Microsoft Dynamics 365, has offices in Canada and the US. The acquisition is part of KPMG’s plan to strengthen its cloud-based service provision.
In line with the consultancy scramble to expand and reinforce their information technology and digital capabilities, Big Four accounting and consulting firm KPMG announced the acquisition of global technology firm Adoxio — a specialist in Microsoft Dynamics for Customer Engagement. The 60-person team at Adoxio helps clients use the cloud-based Microsoft enterprise resource management (ERP) software to improve their relationship with customers — drawing on vast sets of data to better understand, target, and retain them.
"Adoxio is one of the most respected CRM solutions providers in Canada and is a Microsoft Gold Partner," said Georgina Black, Partner & National Leader, Management Consulting at KPMG. "They have a deep understanding on how to use Microsoft Dynamics 365 to derive the insights and strategies to help organizations better understand and serve their clients.”
The boutique IT firm, which has four offices in Canada and one in the United States, will join the larger network of KPMG Canada, which has 40 locations and posted $1.45 billion in revenues last year. The acquisition is part of KPMG’s larger strategy to improve its delivery of cloud-based services to clients — in 2015 the consultancy said that it would be investing more in cloud software in order to head off future accounting-related competition from Google and Amazon.
The deal strengthens KPMG’s ability to deliver customer relationship management solutions through Microsoft 365, while also bolstering its relationship with the software giant. “This acquisition,” said Vice President of Microsoft Business Applications Hayden Stafford, “reinforces KPMG's position as one of our top Microsoft partners.” KPMG has been in a global strategic alliance with Microsoft since 2015, and is part of the 2017/2018 Inner Circle for Microsoft Dynamics – a designation awarded to only one percent of Microsoft Dynamics partners.
Commenting on the acquisition, Adoxio CEO Grant McLarnon said, "The products and services we deliver on Microsoft Dynamics 365 are in alignment with where KPMG is going with their larger Microsoft strategy, and we're enthusiastic about being a part of it. We're looking forward to taking the next step in our evolution."
The deal is the latest in a wave of boutique tech firm acquisitions by larger consultancies in North America. Last year global consulting giant Accenture acquired Toronto IT and systems-integration consultancy VERAX, while Montreal-based CGI acquired Pittsburgh-headquartered IT firm Summa Technologies. The larger consultancies are likely to continue acquiring smaller IT firms for the foreseeable future, in order to better serve the expanding digital needs of their clients.
