PJ: Is this move complementary or competitive to Deltek Vision?
PS: It is very complementary. Maconomy has some A/E customers in Europe, but not many. Conversely, we have some marketing agency customers in the US, but not many. We can use Maconomy’s European market knowledge to accelerate Vision adoption on the continent. By the same token, Maconomy can leverage our US market knowledge and marketing machine to sell Maconomy X1 in the US to their core verticals – advertising/PR agencies, audit & tax firms, law firms, and various consulting firms.
PJ: Will this acquisition finally help Deltek penetrate Europe?
PS: Definitely. It will help accelerate Vision sales to A/E firms onto the continent, and it gives us a broad portfolio of solutions we can sell in Europe in Maconomy’s core verticals.
PJ: What about technology convergence?
PS: We will leverage common technology, development resources, etc. as much as we can. One thing we won’t do, though, is move either X1 or Vision off of their existing technology platforms or force any customers or prospects to move off of one platform or another. This is not a “kill a product line” acquisition. It is all about expanding Deltek’s offering and using the assets of both companies to accelerate Vision sales, accelerate X1 sales, and sell Maconomy People Planner (a very strong resource planning application) across all of Deltek’s markets – GovCon included.
PJ: Who were (and still are) Maconomy’s biggest competitors?
PS: Like Deltek, Maconomy is a very unique company with no direct competitors that run up against time and time again. Typically, Maconomy competes against either generic ERP providers that don’t offer dedicated project-based solutions, or regionally-focused, vertically-specific niche vendors.
PJ: Why didn’t you announce this major acquisition at Deltek Insight 2010?
PS: While it might have been optimal to announce our tender offer at Insight, we needed to make sure that the due diligence process was complete. That takes time. Deltek Insight 2011 should be full of compelling Maconomy-related content.
PJ: Was Maconomy shopping itself around and turned down for profitability and balance sheet issues by other suitors (as some rumors might suggest)?
PS: I can’t comment on whether someone else was going to acquire Maconomy, but I can comment on their balance sheet and income statement. Maconomy struggled a bit with profitability several years ago, but they have returned to profitability, particularly in 2009. On the balance sheet front, they are debt-free, and have about US$7 million in cash. All in all, Maconomy has been in growth mode and doing pretty well. This acquisition is far from being a rescue on our side. We acquired a very strong company on many fronts.