AltX-listed IT services provider, Xantium Technology Holdings, is on the acquisition trail, and has acquired 51 percent of Waymark Consulting for approximately 8.42 million Rand (US$1.4 million), as one of its four intended acquisitions this year.

Xantium will pay R1,53m up front, with the outstanding balance being paid based on agreed earn-out formulas for the years ending February 2006, 2007 and 2008, last week"s SENS announcement reports.

CEO of Xantium, James Murray says: "Other than Waymark Consulting, we have been ?dating" three other companies over the past seven months, to establish if acquisitions of these companies would be beneficial to both our shareholders and customers."

It seems that the past seven month"s relationships have been successful and are about to bear some fruit. Murray says that the next acquisition is expected to be sealed within the next two weeks, with deliberations in the final stages.

He also says that the remaining two acquisitions are set to take place in the timeframe between the end of April and the middle of May. "One of these deals will also see Xantium"s BEE status increase by a substantial amount," he adds.

The shareholders, says Murray, naturally want to see growth and increased share prices as a result of acquisitions, but, he notes that they also want to see a sustainable business established that will have a positive impact for current and future clients.

"Each acquisition has the value to our customers in mind. We understand our customers" service offerings and take their opinion at face value when we look at any acquisition and partnerships," he says.

According to Murray, the acquisition of Waymark Consulting, as well as the proposed acquisitions of the remaining three identified organizations, meets all the criteria the company aims to achieve, and fits perfectly into Xantium"s growth and acquisition strategy.

Waymark Consulting was established in 1997 by Ernst Scholtz, André Rabie, Christiaan Jacobsz and Johan Barwise, and plays in the Oracle Database consulting space, as a certified Oracle business partner.

Says Murray: "We wanted to increase our understanding within the design and architecture space, and concluded that an acquisition is the most obvious thing to do and would be the shortest route to market. Waymark Consulting is the company that will allow us to make this happen."

Murray strongly believes that this acquisition will augment the services of Xantium"s Professional Services division (XPS) and will bring a wealth of knowledge and expertise to the organization"s current consultancy offerings. He says that it will also have a positive impact on the Xantium IT Services company, because Xantium IT Services is a partner to EMC, and Waymark Consulting has a lot of experience in this environment.

In terms of the integration of Waymark Consulting into the Xantium stable, Murray says: "We are going to take the integration process at our leisure. We have found, with the acquisition of Spec last year and its slower integration, that this works best for us. We will, therefore, take the next phase of integration and the coming three months slowly, because we do not want to disrupt business."

Murray says that the primary focus for Xantium will be more on the government arena, at the moment, seeing that government has increased its IT investments within the Oracle database environment - with Parliament, the South African Police Services (SAPS), the Ekhuruleni Metro and the State IT Agency (Sita) all utilizing Oracle Database technology.

In terms of financial gains and revenue increase as a result of the Waymark Consulting acquisition, both Murray and Xantium Technology Holdings financial director, Pieter Johnston, are optimistic.

Murray says the recent acquisition will not have a major effect on the remainder of this financial year, but will have a favorable impact on the next, with the upcoming buys also expected to impact favorably on next year"s figures.

In conclusion he says that Xantium will continue to look at future acquisitions, but will not just buy for the sake of buying. "We will make sure there are major service benefits to clients and shareholders, as well as assured business sustainability," he states.