Monday’s announcement by Cognicase Inc. to purchase Calgary-based computer consulting company Applied Terravision Systems Inc. (ATS) is a ‘perfect fit’, the companies said.
Cognicase, a Montreal-based IT solutions provider, said the $60 million deal will bring with it a North American client base of approximately 700 companies in the oil-and-gas, financial, university and government sectors.
The agreement is intended to bolster Cognicase’s application service provider (ASP) practice and business process outsourcing services division, says Ronald Brisebois, president and CEO of Cognicase.
ATS is an e-solutions provider that has migrated into the business function outsourcing world using proprietary software and ASPs, said ATS president and CEO Robert Tretiak.
The company, which also has offices in Houston and Dallas, provides accounting and other services for independent oil-and-gas companies, he said.
“Cognicase wanted to move into a sector and geographic area and we allowed them to do that with our oil-and-vertical and our dominance in Western Canada through the Western United States,” Tretiak said. “Our business models are similar, there is a similar shared vision, and there is no overlap and no loss in jobs … It’s a very nice fit.”
The two companies will now be able to “cross-sell” business accounting, payroll, customer relationship management and Internet software, Tretiak noted. He said ATS’ 300 IT employees would not be affected by the deal.
Cognicase Inc. in Montreal is at http://www.cognicase.com
Applied Terravision Systems Inc. in Calgary is at http://www.atsi.com.
