eWork and ProSavvy Merge
ProSavvy – a company I’ve been on the board of since 1996 – announced this week that they have merged with eWork. The combined company (called eWork) is the leader in consulting project and contracted workforce services procurement, management, and payment and is a $42 million, profitable company. We continue to be significant investors in ProSavvy and Seth Levine – who works with me at Mobius in Colorado – has joined the eWork board.
Seth has a comprehensive post on the merger, some history, the rationale, and the strategy of the go-forward business. We’re very excited about the transaction and the prospects for eWork going forward, as ProSavvy was a solid, but slow growth company that needed a bigger overall platform to achieve its full potential. We’ve been looking patiently for a merger partner for the past year, having talked to a number of companies that were tangential and/or complimentary to ProSavvy. eWork was the most promising fit and – after a long effort on both sides to make sure that the combined company was greater than the sum of its parts – we moved forward with a deal.
The combination of scale, growth, and profitability matters a lot these days with regard to value creation for enterprise application software and services companies. The combination of eWork and ProSavvy satisfies all of the parameters nicely and we’re optimistic about our ability to create a company with meaningful long term value.