Today, SilverSun Technologies (NASDAQ:SSNT) stock soared as much as 70% during regular trading hours. This price surge came on the heel of news that SilverSun’s wholly owned subsidiary, SWK Technologies, has signed a letter of intent to acquire the Acumatica division of Dynamic Tech Services. The acquisition price was not publicly disclosed at this time.
SilverSun offers business management solutions and IT services for small and medium-sized business (SMB). The acquisition of Acumatica will help expand its cloud-based offerings and customer base.
Joel Gress, CEO of Dynamic Services, spoke highly of the integration between the two corporations:
“Our companies have worked jointly together in the past, and we know each other well. The customer‐focused approach and corporate culture at SWK is very similar to ours. The skill set of their team is exceptional, and both companies share the same corporate values. There are tremendous opportunities ahead, and the size and scale of the combined organizations will enable SWK to take full advantage of these opportunities.”
At the time of writing, shares of SSNT stock cooled down to 22% gains for the day. On a year-t0-date (YTD) basis, SilverSun has returned 130% compared to the S&P 500’s 26% return.
What This Acquisition Means for SSNT Stock
- SWK Technologies is already a large business partner of Acumatica. This will make the acquisition, transition and onboarding process much smoother for Acumatica employees.
- SWK was awarded Acumatica Partner of the Year in 2018 and 2019, and Distribution Partner of the Year in 2020.
- Dynamic Tech has sold its Acumatica software to customers in the United States, Puerto Rico and the Caribbean throughout the past decade.
- Mark Meller, CEO of both SilverSun and SWK, estimates that its current Acumatica customer base will increase by 30% as a result of the acquisition.
- SWK is “laser-focused on enabling the digital transformation of its over 5,000 customers, and the cloud-based Acumatica ERP solution is an important part of its product portfolio.”
- Acumatica has been part of the Dynamic Tech ecosystem for 10 years.
- It is estimated that this transaction will be finalized by the end of 2021.
On the date of publication, Eddie Pan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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