Hummingbird Communications Ltd.’s recent acquisition of PC Docs Group International Inc. is a solid move for both companies, says one analyst.

According to Wayne Gudbranson, president and CEO of Branham Group Inc. in Ottawa, there’s a challenge any company in the information technology business faces at various stages of growth – achieving critical mass. And for companies to do this and remain key players in the industry, they have a choice: build their company “organically or non-organically.

“And although Hummingbird was about $198 million in revenues (at end of its fiscal year), in the grand scheme of things, that’s sort of a medium sized software company on a world scale,” he said. “So from Hummingbird’s point of view it makes a lot of sense to acquire companies to achieve that kind of critical mass non-organically.”

According to Gudbranson, when Hummingbird bought Andyne Computing Ltd ., a business intelligence company, in 1997, that put them into the horizontal market apps business. “And there’s some cross-over in terms of business intelligence and document management which is PC DOCS major fort

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Jim Love, Chief Content Officer, IT World Canada