Dynamic Systems Buys GovStor, Creates Large Government Oracle VAR


Government systems integrator Dynamic Systems has acquired a smaller peer, GovStor, in a move to increase the Oracle-focused solution provider's reach into federal, state and local contracts.

Mardi Norman, president and CEO of El Segundo, Calif.-based Dynamic Systems, on Thursday told CRN that her company has acquired Sacramento, Calif.-based GovStor for an undisclosed sum as a way to expand its reach into some key California state government contracts for Oracle technology.

"We've been competing with GovStor for over a decade," Norman said. "We've known each other. We bumped into each other often. We won't be bumping any more."

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Prior to the acquisition, Dynamic Systems had an annual revenue of about $80 million, while GovStor had a revenue of $5 million to $10 million, Norman said. GovStor had a staff of only five or six people, of whom about half were sales reps who will join Dynamic Systems, she said. Peter Tellier, president of GovStor, will joint Dynamic Systems during a transition period after which he is expected to retire.

The acquisition happened quite quickly, Norman said.

"Peter made the comment to me a couple months ago that he'd like to retire," she said. "I said I'd like to help him retire. It was a smooth process. Two months is very fast for this kind of transaction."

Dynamic Systems is looking to expand its state and local business in California, Norman said.

"In 2012, we won the eServer contract for Oracle with the State of California," she said, referring to the state's IT purchasing system. "GovStor won it, too. Dynamic Systems is much larger than GovStor. It made sense for us to combine."

With the acquisition, Dynamic Systems will take over all GovStor's Oracle hardware and software maintenance contracts and serve them through the solution provider's cloud-based platform.

PUBLISHED SEPT. 26, 2013