Speridian Technologies in Albuquerque is merging its software design and management business with the California-based information technology firm Xelleration.
The deal will significantly grow both companies’ suite of services and products because it merges Speridian’s expertise in Oracle-based software management with Xelleration’s specialization in Microsoft systems, said Speridian President and Chief Operating Officer Ali Hasan.
“We build Oracle-based software solutions for businesses and Xelleration builds products and services on top of the Microsoft platform,” Hasan said. “By bringing our individual areas of expertise together, we can offer the best of both platforms to our customers.”
Speridian will hire up to 25 new employees in Albuquerque to support Xelleration’s operations, Hasan said. About 60 core employees are based here at a 21,000-square-foot building at 2400 Louisiana NE. But Speridian manages all its workforce training here, which frequently grows the local employee base to 100 or more.
The companies did not disclose the terms of the deal.
The merger could help diversify both companies’ customer base, since they’ve each focused on different markets. About 70 percent of Speridian’s business is concentrated in the health and human service industries, while Xelleration provides IT services in more traditional markets, such as retail and manufacturing, Hasan said.
“Xelleration also serves educational institutions, not just K-12, but higher education, which is something Speridian hasn’t done,” Hasan said. “The merger will allow us both to get into a new set of industries with a more diversified portfolio of technologies.”
Speridian brings a lot more corporate strength to the table than Xelleration.
The Albuquerque company, which founder and CEO Girish Panicker launched in 2003 as a one-man operation, has grown to about 1,100 employees in the U.S. and elsewhere. Apart from its headquarters in Albuquerque, it operates five regional offices in Oregon, Washington, D.C., Canada, Dubai and India.
In contrast, Xelleration employs about 90 people, with about 60 in Irvine, Calif., and the rest at regional offices in Dubai and Pakistan.
Xelleration does not publicly discuss its revenue. But Speridian has reported exponential growth, reaching $31.5 million in revenue last year. That’s up from $11.2 million in 2010 and just $3.2 million in 2006.
Since 2015, Speridian has acquired two other IT firms. But it sought a merger with Xelleration rather than acquisition to keep the Xelleration name on the market.
“Xelleration is very well respected in California,” Hasan said. “We want that brand recognition.”
For Xelleration, Speridian’s corporate strength makes the merger particularly attractive.
“It gives us broader reach and access to resources and customers nationally and globally,” said Xelleration Chief Operating Officer Brendan Neary.