- ECI Software Solutions acquired Khameleon Software, a cloud-based ERP for project-based dealers, to deepen its commercial furniture distribution ERP lineup.
- Khameleon (founded 1989, Temple Terrace, Florida) will join ECI’s Distribution division, and deal terms were not disclosed.
- The purchase complements ECI’s existing TeamDesign ERP by adding a more cloud-native option, but creates product overlap and integration/migration execution risk.
- The deal continues ECI’s acquisition-led vertical expansion and supports subscription-driven growth amid competition from larger and niche ERP vendors.
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The acquisition of Khameleon by ECI Software Solutions represents a strategic move to strengthen ECI’s cloud-ERP offerings in the commercial furniture and project-based distribution markets. Khameleon’s specialization in project-based dealers—including commercial furniture, AV/security integrators, and similar sectors—adds depth to ECI’s vertical specialization.
ECI’s maneuver fits a clear pattern of the company accelerating its market expansion through acquisitions. Examples include recent additions such as ProfitKey (manufacturing ERP), Avid Ratings (customer experience tools), and Davisware (service-dispatch job costing) among others. The Khameleon deal is part of a sequence of four acquisitions in 2024, each reinforcing ECI’s presence across its target verticals.
Khameleon appears to serve dealers with complex project-based workflows: quoting, analytics, accounting, and support from quote to cash. For ECI, the opportunity lies in offering multiple ERP paths—TeamDesign for legacy and existing use cases, and Khameleon as a cloud-native, modern platform for customers seeking newer tech. The risk will be managing overlap, migration paths, and integration without disrupting Khameleon’s customers.
Financially, though precise deal terms weren’t disclosed, this acquisition should help support recurring revenue growth via subscription-based cloud offerings, potentially increasing ARR margins. However, ECI will need to make R&D and integration investments. Competitive risks include facing ERP giants (NetSuite, Microsoft Dynamics) and smaller niche cloud ERP players.
Several open questions emerge: What percentage of Khameleon customers will migrate to Khameleon’s cloud platform vs retain TeamDesign or other ECI ERP products? How will ECI rationalize overlapping product lines in commercial furniture? What are the cost savings or efficiencies anticipated from integrating Khameleon’s team? Also, in which geographies is Khameleon strong, and will ECI push Khameleon into international markets? These will determine the upside potential and integration complexity.
Supporting Notes
- Acquisition completed on September 4, 2024; Khameleon is a cloud-based ERP company serving project-based dealers.
- Khameleon founded in 1989; headquartered in Temple Terrace, Florida.
- ECI’s global presence: ~25,000 customers, over 80–90 countries; 30+ years in business.
- ECI already offers TeamDesign®, a fully integrated ERP for commercial office furniture dealers and wholesalers.
- ECI’s recent acquisition momentum: ProfitKey, Avid Ratings, Davisware, etc., expanding into manufacturing, homebuilding, service industries.
- Khameleon customers will see continued investment in product development, with support and operations remaining stable post-acquisition.