On April 24, SMS announced that it had taken over SC Management Consulting, which was followed yesterday by the announcement that it had also bought AVOGA in a cash-and-share deal worth up to $5 million.
SMS marketing and capability manager Matthew Kaufmann said the company had decided to not announce the value of the SCMC transaction for commercial reasons.
SCMC is a Mackay-based consultancy that provides business improvement services to the mining, resources, infrastructure, government and tourism sectors.
Its acquisition gives SMS a permanent presence in central and northern Queensland.
SCMC director and owner Suzanne Cram said: "SCMC has invested in the region over 13 years and has become a trusted partner for many leading companies."
The AVOGA purchase gives SMS another 40 staff and could potentially add $10 million in revenue.
AVOGA is a Sydney-based applications development company that has strengths in a range of software and IT project management areas. Kaufmann said the acquisition would also boost SMS' mining work.
He said SMS planned to grow its reach and capabilities through acquisition.
"We do a lot of work out of Queensland," he said. "That's one of our biggest offices, which is why the SCMC acquisition works so well.
"The AVOGA acquisition is about extending the breadth and depth of our offerings."
Kaufmann said SMS was a management technology company that sat "between Accenture and IBM and the smaller boutique operators".
The AVOGA purchase involves a $4 million cash and share deal, with the shares escrowed for 12 months. A further $1 million cash component is conditional on future performance.
SMS has operations up and down Australia's eastern seaboard as well as in the UK and Singapore.
"We've done some mining work in the Philippines and other Asian countries," Kaufmann said.
He did not rule an expansion into Western Australia, although that would be dependent on the right acquisition opportunity arising.
"It's unlikely we would organically open an office in Perth," Kaufmann said.
Noel Dyson is editor of Australia's Mining Monthly.
