James, growth by acquisition is a time-honored strategy. There are risks involved. You didn't outline any new ones, but the ones you did outline are valid. There is also risk involved in deciding to fully develop the product with your current (or slightly expanded) resources. And obviously you can hire some people with experince in the new area. I've seen acquisitions to get the customer base, and also to get the technology and/or product base. Since AC had not yet started on this product, it would make sense to consider acquiring one if they found one they thought was appropriate. And they would get the customer base too. Nothing wrong with them later developing an new product to replace it if they wish and porting the customers to it. Same with working closely with a billing s/w vendor. Just because they later develop their own product doesnt mean they have to sever ties. It just gives the customers a choice. And if the other company's management had half a brain, they would be planning for this eventuality anyway.
