SMS buys out BI consultancy Pelion

In a statement to the ASX, SMS said that Pelion "will add $6 million in revenue to the SMS business" and will be earnings per share accretive from July 1.

It was purchased for a price equal to "three times historical earnings". Two-thirds of the purchase price is subject to performance over the next three years, SMS said.

Pelion's managing director, David Ertle, will head up SMS' data management practice in NSW "to further develop and grow" the old Pelion business in its new home.

Pelion are best known as a Cognos business intelligence/IBM consulting and reseller partner, although they also hold partnership agreements with Microsoft, Informatica, Oracle and Brightstar Partners.

SMS chief Tom Stianos said SMS had partnered with Pelion "on several projects" prior to the acquisition.

"Pelion brings us another specialist practice with consistent revenues and a growing number of annuity contracts," he said.