Published: March 7th, 2014

Winnipeg-based Encore Business Solutions acquired Burnaby, B.C.-based Candlewest Systems on Monday, leaving the newly merged entity as the largest Microsoft Corp. partner selling Dynamics enterprise resource planning (ERP) in Canada, according to Brent Twist, CEO of Encore.

Microsoft told Twist that bringing Candlewest under Encore’s wing is a move that makes his IT services shop the largest Microsoft partner in Canada measured by annual revenue. The combined firms haul in between $18-$19 million each year, but Twist thinks the two firms can reach $22 million per year by next year.

“What we saw with the last transaction we did was one plus one equalled about four,” he says. Encore acquired Vancouver-based Dynamics reseller RSC Group in December 2012.

“With the changes in the Microsoft partner program, it makes sense to be a larger partner,” Twist says. “So it’s a choice of whether you want to be consolidated, or consolidate others.”

The bigger business will result in better business processes, more resources, and better oversight to ensure successful projects, according to Twist.

With the Candlewest acquisition, Encore will now be the brand name delivering services previously offered by Candlewest and gains its one office in Burnaby. All Candlewest employees will stay on board at Encore, Twist says, and he’s even looking to hire more staff. The combined forces of the two partners include almost 100 full-time employees and 25 current contractors, he says.

Encore is a reseller of Dynamics GP, NAV, CRM, and SYSPRO ERP – excluding only Dynamics SL from the ERP portfolio. Its target market is mid-market to enterprise-level Canadian firms. It now supports about 600 customers across the country.

A statement from Candlewst President Bob de Ridder was offered in a press release:

“This acquisition is a natural extension of our growth strategy and we are proud to be merging our efforts with such a well-respected player in the business management solution community,” reflects Bob de Ridder, President of Candlewest. “Taking care of customers remains top priority and as a result customers can expect product and service continuity throughout the transition. We are very excited by the breadth and quality of services our new team will be able to provide – this is truly a win-win deal”.