SBI To Acquire WebFlow To Bolster SAP Services, Software Strategy

The acquisition is also aimed at bolstering SBI's software strategy and quickly growing its SAP practice. WFI, based in Scottsdale, Arizona, is a small, 30-person consulting company with a focus on pre-packaged software applications using SAP's native workflow technology, SAP Business Workflow.

Ty D. Mattingly, SBI executive vice president of corporate development, characterized WFI as a sound, well-managed company experiencing the kind of adequate growth that will help SBI fuel its own growth, particularly in the software market. The acquisition of WFI comes with well-known SAP clients including Eastman Chemical, Hasbro, Inc. and Nestle USA.

Mattingly said SBI has done a lot of packaged implementation work around enterprise applications, but hasn't focused much in the SAP space. "So as a logical progression for us to continue to grow that service, we need to extend and move into the SAP space," he said.

The specific terms, conditions and value of acquisition deal were not disclosed. Both companies are privately held. The WFI acquisition follows a series of 2001 acquisitions including Portland, Ore.-based Emerald Solutions and former MarchFirst employees, offices and clients.

Mattingly said while the Emerald Solutions and MarchFirst acquisitions were vertically and geographically strategic in the area of professional services blended into SBI's overall offerings, WFI is a different. Once the deal is completed, WFI will begin operations as a wholly owned subsidiary of SBI, he said.

"We've had software in the past, but more isolated components," said Mattingly. "It makes sense for us to set up a structure to be successful in the software world. So we will get more aggressive in software and, at the same time, it may make sense to group our software assets together and operate in them in a different fashion."

Another strategic reason to structure WFI as a subsidiary is to maximize its channel opportunities for growth, even if those channel opportunities mean there are going to be solution providers out there competing with SBI, said Mattingly.

"WebFlow has their own channel program, and we're going to be investing significantly and making that program even more substantive moving forward," said Mattingly.

Gary Knopp, president and cofounder of WFI said the acquisition at the most basic level means a larger corporate footprint and infrastructure enhancements. "But it's also additional and complementary services we can bring to the table that a small company selling to a large company has a challenge stepping up to," he said.

Both Mattingly and Knopp said the deal should be completed by the end of May. They said clients are already expressing interest in SBI's extended services offerings, particularly in the area of supply chain management and customer collaboration.

"We are hearing WebFlow customers ask whether WebFlow can come in with its new services partner and help solve some other problems," said Mattingly. "So we think our strategy is working."