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itelligence AG Acquires ITML GmbH: Strengthening SAP Consulting

itelligence AG and ITML GmbH, Pforzheim, today announced the acquisition of ITML by itelligence AG. With effect from June 1, 2016, itelligence will take over 100 percent of the renowned South German SAP consulting company and SAP Gold Channel Partner, ITML GmbH.

With the acquisition of ITML, itelligence AG consolidates its position as the world’s most successful SAP consulting house for the SME sector, continues its expansion in Germany and significantly increases its market presence in southern Germany. In addition, itelligence strengthens its position in the promising and fast-growing CRM segment, particularly in cloud solutions for customer relationship management (CRM), and in the area of customer commerce, with the ITML experts nationwide.

As an SAP Gold Channel Partner, ITML is one of SAP’s main partners and is a key CRM specialist in the German-speaking countries. Its core competencies include not only SAP consulting and implementation, but it also has its own software suite for customer relationship management (CRM), which is fully integrated in SAP. ITML employs more than 160 people.

Herbert Vogel, CEO of itelligence AG says: “With ITML, we not only strengthen our presence in the lucrative southern-German market but also in the booming field of Customer Engagement & Commerce and omni-channel. SAP and ITML both offer sophisticated solutions which we can adapt to suit the SME sector.”

For example, in a recent press release SAP reported particularly strong growth in its CRM / CEC cloud business: “In the first quarter, cloud revenue increased by 33 percent compared to last year. The rapidly-growing cloud business and solid growth in support revenue meant that the proportion of more-predictable total revenue generated reached a record level. The total revenue from cloud subscriptions and support and also from software support for the first quarter 2016 accounted for 69 percent of total sales.”

Norbert Rotter, CFO of itelligence AG says: “The purchase of ITML GmbH is a strategic asset for itelligence AG. itelligence acquires an attractive customer base and significant CRM expertise. In addition, we are significantly strengthening our presence in south-western Germany, which we will continue to expand.”

ITML’s customers include international concerns, hidden champions from the SME sector and regional SME customers. In total ITML serves more than 400 customers.

Stefan Eller, founder and CEO of ITML GmbH says: “We are very excited about the new opportunity offered by itelligence AG. I expect that the integration of ITML will enable itelligence to increase CRM / CEC turnover significantly, because I am convinced that our customers and our employees will benefit from both the integration and our solutions alike. We are pleased that our mission to deliver user-friendly applications based on SAP solutions, will be continued and strengthened.”

Tobias Wahner, founder and CEO ITML GmbH says: “itelligence is very well prepared for the future and offers us a great base on which to drive new innovation topics such as the Internet of Things (IoT) or cloud solutions. There are already data centres in operation, which means that new solutions by SAP and ITML for customers can be operated efficiently. Future-proof forms of operation and service, such as managed services, will therefore stay in the foreground. Existing and new solutions can also be offered to itelligence’s extensive installed customer base of itelligence, so that they too will benefit from the stronger CRM focus.”

The takeover by itelligence is being undertaken on the assumption of continuity. All employees of the previous ITML will be transferred. All three ITML-founders and CEOs will assume senior positions within itelligence. In addition, itelligence plans further recruitment in southern Germany.

Willy Krießler, founder and CEO of ITML GmbH and responsible for human-resources management, finance and IT says: “The acquisition by itelligence AG opens up many opportunities for our employees to develop professionally in an international environment. Each of our employees is and will remain valuable to us. The Pforzheim office will be maintained and further developed. Human resources and fair treatment is therefore still our focus, because if our skilled personnel can work happily and be highly motivated, it will also benefit our customers. We are confident that our exceptional team spirit will help us to develop rapidly together with our colleagues from itelligence. As we have come to know itelligence, we have learned that our corporate cultures, with their flat hierarchies, are very similar.”

Dr. Andreas Pauls, Executive Vice President Managing Director Germany of itelligence AG says: “We are planning to use this strategic expansion to expand our cloud-based market share significantly, particularly in the area of CRM and in the hybris environment. For our customers this acquisition means a more extensive service network in Germany and even better advice on the topic of customer relationship management, which is one of the most important issues for the future.”

The parties have agreed to refrain from comment on the specific purchase price.