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A Winning Combination: Software-as-Services Plus Business Consulting and Process Services
By Laurie McCabe
January 30, 2004

Looking to broaden its portfolio of services, BlueStar Solutions, an application outsourcing provider that specializes in SAP services, yesterday announced that it has signed a definitive agreement to acquire Agilera Inc., a full-service ASP based in Englewood, Colorado.

While terms of the agreement were not released, BlueStar Solutions did say that Agilera shareholders will exchange their shares for shares of BlueStar Solutions. Agilera will become a wholly owned subsidiary of BlueStar Solutions, headquartered in Cupertino, Calif.

The acquisition is designed to broaden BlueStar Solutions’ range of services, increase market share and provide greater financial strength and stability. Thomas F. Kelly, chairman and CEO of BlueStar Solutions, will continue in that role for the combined company. Shaun Gilmore, CEO of Agilera, will join the BlueStar Solutions Board of Directors.

BlueStar Solutions reports that manufacturing, healthcare, financial services, retail, business services and the public sector are growing markets the company and that the combined company will have more than 100 customers and 60,000 hosted users.

With the addition of Agilera’s service offerings, BlueStar Solutions now offers a wider array of enterprise resource planning (ERP) applications including those from Oracle, Lawson and J.D. Edwards. The companies’ report that this will provide customers with an easier transition path should they elect to either add new ERP solutions or migrate to a new ERP service.

The combined organization will be staffing corporate data centers and technical centers of expertise in Phoenix, Arizona, Columbia, South Carolina and Dallas.

“BlueStar Solutions’ mission has been to lead the industry in providing customers who have chosen SAP with a broad choice of service offerings delivered at the highest levels for an attractive ROI,” Kelly said. “Our acquisition of Agilera provides us with the ability to serve customers who have made packaged application decisions for both ERP and Messaging Applications while maintaining our commitment to expand our SAP base of business.”

Agilera is listed by ASPnews as a Top 20 Service Provider.

Do you have a comment or question about this article or the ASP industry in general? Speak out in the ASP Discussion Forum.


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