General Physics (GP) announced today they have entered into an agreement to acquire the assets of the consulting business of RWD Technologies. The deal is valued at $28M and is expected to close in the next 60 days. If you know much about the two companies and their history, you too may find this deal incredibly interesting. For me it’s about how the two firms will integrate two very similar cultures, with different but synergistic capabilities, and brands that have competed head to head for a number of years.
The cultures are similar because both companies were formed by the same entrepreneur – Dr. Robert W. Deutsch - thus the initials RWD. GP was founded in 1966 and RWD in 1988. Both companies have competed head to head in the training outsourcing market for a number of years. Both have great histories in industrials; energy, automotives and manufacturing, to name a few. Both have excellent experience in lean services, content development, training administration, and delivery services.
In the last few years each organization started developing differing capabilities. GP
has been more successful in developing its business process outsourcing capabilities where RWD formed a strong relationship with SAP allowing them to grow in the IT training services market.
Here is where I find the greatest potential benefit to clients. According to Doug Sharp, President of GP, one of the greatest opportunities for the joined organizations will be in their “ability to help clients generate improved value from their investments in ERP systems and infrastructures”. RWD has been instrumental in the IT training market because of their expertise in managing large, complex ERP installations. What I think GP brings to the table is their ability to help those clients get the most value from their ERP infrastructure.
So how about the brands? GP has a history of continuing to use acquired brands for the purpose of maintaining and protecting existing client relationships. We’ve seen this with Via Training, Option Six, PerformTech, and more. All operate as wholly owned subsidiaries. But sometimes it’s confusing to customers when multiple brands are used. I’ve personally experienced this within the training outsourcing market. In the next 12 to 18 months it will be interesting to see how GP chooses to leverage, and/or integrate the brand of RWD.
As always, I welcome your comments. Or feel free to send me a note at dharward@trainingindustry.com.
Editor's Note: GP is a sponsor of TrainingIndustry.com. RWD is a past sponsor.
