SoftwareOne completes mega billion-dollar acquisition of Crayon

SoftwareOne has completed its acquisition of Crayon, creating a combined global provider with software and cloud solutions, with a total revenue of CHF 1.6 billion (A$3.075 billion) and 13,000 employees across more than 70 countries.

At the time of the initial announcement ARN reported, the combined company expects significant value creation through major revenue and cost synergies. Crayon stated that run-rate cost synergies of CHF 80–100 million ($143–178 million) within 18 months of completion have been identified, in addition to SoftwareOne’s earlier announced cost savings of over CHF 50 million ($89 million).

Following a joint evaluation, the unified organisation will operate under the SoftwareOne name and logo, leveraging its global brand recognition while incorporating Crayon’s legacy.

Co-CEOs Raphael Erb and Melissa Mulholland will lead the executive board and will be joined by regional presidents, who have also been recently appointed.

The integration process will include the implementation of a joint operating model, alignment of the go-to-market strategy and offering, as well as integration of IT systems and consolidation of legal structures in overlapping countries.

The combined company will retain its legal headquarters (HQ) in Switzerland, while Crayon’s Oslo HQ will remain an important hub for both sales activities and certain other functions.

SoftwareOne said This decision reflects the strategic integration of both companies’ capabilities, values, and market presence.

“Crayon’s cultural and operational attributes, including its brand heritage and customer-centric approach, will be embedded into an evolved SoftwareOne brand, it said.

“During a transition period, the Crayon brand will remain active to ensure consistency, continuity, and recognition across customers and employees, channel, and partner engagements.”

SoftwareOne co-CEO Raphael Erb said the shared commitment to innovation will offer new growth opportunities as the “industry continues to evolve in the era of AI”.

“With our talented teams globally, in-depth expertise and capabilities, as well as deep hyperscaler partnerships,” said SoftwareOne co-CEO Melissa Mulholland. We will be excellently positioned to support customers on their digital transformation journeys.”

Microsoft, a partner of SoftwareOne and Crayon, gave its blessings when the acquisition was first announced.

At the time the software giant’s executive vice president and chief commercial officer, Judson Althoff said, both organisations have been strategic channel partners.

“We are grateful for the work both companies have done to serve our joint customers over the years,” he said. “As these companies come together, I’m excited to see the added value it will bring customers such as broader geographical coverage and enhanced service offerings to support their business transformation needs.”

Microsoft chief partner officer Nicole Dezen said that with the acquisition now complete, the combined company becomes one of Microsoft’s largest partners.

“Together, they become one of our largest partners, better positioned than ever to serve our mutual customers with broader reach, deeper expertise, and enhanced capabilities,” she said. “We’re excited about the opportunities this combination brings for the innovation we will jointly deliver and the impact this will have on our shared customers.”

The initial acquisition announcement occurred during the time Microsoft changed the incentives for tier-one licensing solution partners, shifting them to newer models such as Microsoft Customer Agreement (MCA) and Cloud Solution Provider (CSP).

The incentives drop would have a major impact on large service providers like SoftwareOne, with IBRS analyst Joe Sweeney noting the shift to cloud and AI is fundamentally reshaping the landscape for MSPs.

“Take a look at mergers and acquisitions,” he said. “Founders of MSPs and specialists got into the business because they were really good at something and had a passion for it, that something is often a particular part of the Microsoft ecosystem, such as data analytics, AI, or another specialised area,” he said.