Breakaway Boosts Middle-Market E-Services Position With Eggrock Acquisition - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.


Breakaway Boosts Middle-Market E-Services Position With Eggrock Acquisition

Breakaway Solutions Inc., a provider of business-to-business E-commerce services for middle-market businesses, today disclosed plans to acquire Eggrock Partners, a privately held systems integrator and application service provider, for $250 million in stock.

Breakaway provides strategy, integration, application hosting, and support to companies looking to move into the E-commerce market. Eggrock was an ideal acquisition because of its similar business model, culture, and consulting approach, says Gordon Brooks, Breakaway's president and CEO.

The companies share a common background: executives from both firms, including the CEOs, were formerly consultants with Cambridge Technology Partners. With the acquisition, Eggrock president and CEO Maureen Ellenberger will become VP and chief innovation officer at Breakaway.

Breakaway had been planning to expand, expecting to fund its growth with money raised in its initial stock offering last fall. "In 2000 and 2001, we planned to open more regional offices, create more hosting and solution centers, and increase our head count," Brooks said. The acquisition, he said, puts the company one full year ahead of schedule.

Brooks is bullish on the company's potential for growth, citing a Forrester Research report that stated middle-market companies will account for 53% of overall spending on E-commerce services this year. "The market is huge, it's underserviced, and we are the only public company currently serving companies with revenue under $500 million."

Jennifer DiMarzio, associate analyst at Summit Strategies, expects the deal will strengthen Breakaway's position in the market, allowing the it to expand its reach. "They have gained skilled people, incredibly important with today's labor shortage, and two solution centers. It's good news."

Investors reacted favorably to the deal, pushing Breakaway's stock up 4-5/8 to close at 74.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
2020 State of DevOps Report
2020 State of DevOps Report
Download this report today to learn more about the key tools and technologies being utilized, and how organizations deal with the cultural and process changes that DevOps brings. The report also examines the barriers organizations face, as well as the rewards from DevOps including faster application delivery, higher quality products, and quicker recovery from errors in production.
Think Like a Chief Innovation Officer and Get Work Done
Joao-Pierre S. Ruth, Senior Writer,  10/13/2020
10 Trends Accelerating Edge Computing
Cynthia Harvey, Freelance Journalist, InformationWeek,  10/8/2020
Northwestern Mutual CIO: Riding Out the Pandemic
Jessica Davis, Senior Editor, Enterprise Apps,  10/7/2020
Register for InformationWeek Newsletters
Current Issue
[Special Report] Edge Computing: An IT Platform for the New Enterprise
Edge computing is poised to make a major splash within the next generation of corporate IT architectures. Here's what you need to know!
White Papers
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll