SMS Acquires MSP Indicium for $22 Million

Management services company SMS Management & Technology Ltd. (SMS)(SMX) has announced plans to acquire the Indicium and Access Networks group of entities, a managed services provider (MSP), for $22 million.

SMS cited Indicium's market strength including  its proven access to a high growth sector of IT and annuity contracts with typical fixed terms of between 3 to 5 years. Indicium specializes in business cloud and infrastructure management.

SMS CEO Tom Stianos said in his prepared remarks that the acquisition "supports our growing managed services and infrastructure consulting capability, and meets our strategic imperative to increase our annuity revenue. We are confident that this capability will grow strongly within SMS, giving it ready access to our regional hubs, national sales team and client base," he added.

Indicium founders, Andrew Stylianou and Manish Goklaney, said in a prepared statement that the acquisition enables their company to address larger scale projects for its customers.

Financial details of the deal were not available but the companies said that the terms included an up-front payment (a combination of cash and shares) and two deferred payments conditional on profit performance over a two year period.