AMS to Buy Synergy Consulting

AMS to Buy Synergy Consulting

By Gail Repsher, Staff Writer

AUG. 8 ? American Management Systems Inc. of Fairfax, Va., will buy the assets of privately held Synergy Consulting Inc. of Sacramento, Calif., in a cash transaction, AMS announced early this month. Terms of the deal were not disclosed.

Synergy, a provider of e-business, information technology and management consulting services to California state and county government agencies, had 1999 revenue of $15.4 million.

AMS said the acquisition supports the expansion of its state and local government business in key markets and expands its e-government activities. AMS, a business and IT consulting firm, had 1999 revenue of $1.24 billion. E-business accounted for 40 percent of the total, an increase of more than 150 percent over 1998.

Acquisitions are a new strategy for AMS, which has made one other purchase in the last five years. In March 1999, the company bought Budget Technology Inc. of Bethesda, Md., which specializes in budgeting systems for state and local governments.

AMS also has struck alliances or partnerships with several firms, including Ariba Inc. of Mountain View, Calif., an e-commerce software provider; Siebel Systems Inc. of San Mateo, Calif., a maker of customer relationship management software; and govWorks Inc. of New York, a developer of e-government services.

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