June 07--UST Global, a leading provider of end-to-end information technology services, has acquired Xpanxion's software development and consulting business, the companies announced Friday.
Xpanxion has been in Ames since 2011 and has about 50 employees locally. It also has offices in Kearney, Neb., Loup City, Neb., and Manhattan, Kan.
Xpanxion Founder and President Paul Eurek said that UST Global was the right match at the right time, likening the merge to "putting accelerant on a fire."
"We started an interesting and exciting concept (at Xpanxion), and joining forces with a company with a lot more resources and a larger global footprint is going to give us the ability to expand faster than we ever dreamed of," Eurek said in a news release announcing the merger.
Xpanxion was recognized by the Ames Economic Development Corporation in February with the Economic Impact Award for its influence in job creation in Ames and the surrounding area.
The acquisition is expected to strongly bolster Xpanxion's unique rural sourcing Midwestern roots.
"You can't just pick up our company and move it," Eurek said. "That's the beauty of a knowledge-based workforce. Your value is with the people, not a product or production line."
UST Global, based in Aliso Viejo, Calif., was the right fit for many different reasons according to Eurek.
"I believe there is a lot of synergy between our two companies," Eurek said. "What we were trying to do, with building a high-tech workforce in the rural areas, is what UST Global was doing in parallel within large metropolitan cities."
Saurabh Ranjan, managing director of UST Global's Global Operaitons, said that, "by acquiring Xpanxion's unique cross-sourcing model that leverages talents from across the globe with U.S.-based rural hubs, we aim to provide customers with cost-effective, secure, and collaborative solutions:
"This acquisition will enable UST Global to provide a complete range of quality software services for clients," Ranjan said.
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