Perficient Buys IBM Analytics Firm For $5.3M

Perficient has purchased an IBM analytics firm for $5.3 million to bolster its presence in the Southeastern U.S. and better support financial performance management solutions.

Chattanooga, Tenn.-based Market Street Solutions employs 30 consulting, technology, sales and support professionals, and does $10 million in software and services sales around big data and analytics. Market Street CEO Jeff Wade will take on a key leadership role for St. Louis-based Perficient, No. 56 on the CRN Solution Provider 500.

"We are excited to strengthen our analytics capabilities with this small yet strategic acquisition," Jeff Davis, Perficient's president and CEO, said in a statement. "Market Street's reputation, customer-centric mentality and solid client roster ensures a strong cultural fit and compelling opportunities for accelerated growth moving forward."

[Related: Perficient To Buy E-Commerce IT Firm For $35.7M]

The deal is expected to benefit Perficient's adjusted earnings per share. Perficient will pay for Market Street Solutions with approximately $4.1 million in cash and $1.2 million in stock, with the overall price subject to a contingent earnings-based consideration of up to $1.2 million.

Perficient did not return calls for additional comment.

Wade said in a statement that he was impressed by Perficient's track record around delivering digital and business optimization solutions to enterprise customers.

"Perficient is widely-regarded as one of the finest and most capable IBM business partners in North America," Wade said.

Market Street's enterprise customers include Cigna-HealthSpring, Cracker Barrel, Pilot Travel Center, Protective Life Insurance Corp. and Varsity Brands. The company is an IBM Premier Business Partner and authorized reseller of IBM Cognos, SPSS and PureData Systems for analytics software products.

Market Street was founded in 2002, and is focused on serving the Southeastern U.S. Its employees specialize in business intelligence, financial performance management, data warehousing, data integration and big data.

This year has been relatively quiet for Perficient on the mergers and acquisitions front, with no activity until the Market Street deal. It was a very different story in 2013 and 2014, when the rapidly expanding solution provider made seven acquisitions.

Last year, Perficient bought financial services company ForwardThink in February; life sciences and pharmaceutical technological consulting firm BioPharm Systems in April; the IBM Smarter Commerce Division of Trifecta Technology in May for $13.7 million; and e-commerce IT firm Zeon Solutions for $35.7 million.

In 2013, Perficient purchased IBM and Salesforce.com partners Clear Task and TriTek Solutions in May, and CoreMatrix in October.

Perficient is a Premier-level IBM business partner, a Microsoft national solution provider and Gold certified partner, an Oracle Platinum partner and a Platinum Salesforce cloud alliance partner.

PUBLISHED SEPT. 18, 2015