Breakaway Boosts Middle-Market E-Services Position With Eggrock Acquisition - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

Breakaway Boosts Middle-Market E-Services Position With Eggrock Acquisition

Breakaway Solutions Inc., a provider of business-to-business E-commerce services for middle-market businesses, today disclosed plans to acquire Eggrock Partners, a privately held systems integrator and application service provider, for $250 million in stock.

Breakaway provides strategy, integration, application hosting, and support to companies looking to move into the E-commerce market. Eggrock was an ideal acquisition because of its similar business model, culture, and consulting approach, says Gordon Brooks, Breakaway's president and CEO.

The companies share a common background: executives from both firms, including the CEOs, were formerly consultants with Cambridge Technology Partners. With the acquisition, Eggrock president and CEO Maureen Ellenberger will become VP and chief innovation officer at Breakaway.

Breakaway had been planning to expand, expecting to fund its growth with money raised in its initial stock offering last fall. "In 2000 and 2001, we planned to open more regional offices, create more hosting and solution centers, and increase our head count," Brooks said. The acquisition, he said, puts the company one full year ahead of schedule.

Brooks is bullish on the company's potential for growth, citing a Forrester Research report that stated middle-market companies will account for 53% of overall spending on E-commerce services this year. "The market is huge, it's underserviced, and we are the only public company currently serving companies with revenue under $500 million."

Jennifer DiMarzio, associate analyst at Summit Strategies, expects the deal will strengthen Breakaway's position in the market, allowing the it to expand its reach. "They have gained skilled people, incredibly important with today's labor shortage, and two solution centers. It's good news."

Investors reacted favorably to the deal, pushing Breakaway's stock up 4-5/8 to close at 74.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
Slideshows
What Digital Transformation Is (And Isn't)
Cynthia Harvey, Freelance Journalist, InformationWeek,  12/4/2019
Commentary
Watch Out for New Barriers to Faster Software Development
Lisa Morgan, Freelance Writer,  12/3/2019
Commentary
If DevOps Is So Awesome, Why Is Your Initiative Failing?
Guest Commentary, Guest Commentary,  12/2/2019
Register for InformationWeek Newsletters
Video
Current Issue
Getting Started With Emerging Technologies
Looking to help your enterprise IT team ease the stress of putting new/emerging technologies such as AI, machine learning and IoT to work for their organizations? There are a few ways to get off on the right foot. In this report we share some expert advice on how to approach some of these seemingly daunting tech challenges.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll