VAR500 Merger: Presidio Agrees to Buy INX10:22 AM EST Tue. Nov. 01, 2011
Presidio Network Solutions has reached a deal to acquire INX in a merger of two VAR500 companies. Presidio, headquartered in Greenbelt, Md., has agreed to pay $8.75 per share for Dallas-based INX or about $85 million.
The transaction is expected to close in early 2012, subject to the shareholder approval and other closing conditions. INX's board of directors has approved the deal. INX's stock had closed Monday at $7.75 per share.
"Combining INX and Presidio’s capabilities will enable us to offer one of the broadest portfolios of services and advanced IT solutions available in the industry,” said Kevin Penn, Presidio chairman, in a statement. "Both Presidio and INX clients will benefit greatly from this partnership. The similarity of the two cultures should lead to a very smooth transition."
Mark Hilz, INX president and CEO, said combining the organizations will help accelerate growth and build the scale it needed to provide the highest quality of service to customers.
"We are extremely excited about becoming part of this combined organization," Hilz said in a statement. "Simply put, this combination is a win for our clients, employees, and our shareholders."
The combined company will keep the Presidio name and include more than 1,800 employees in 45 offices across the United States.
Presidio ranked No. 23 on this year's VAR500 with sales of $1.28 billion. INX reported $312.0 million in sales in 2010, and had reported $195.9 million in sales through the first two quarters of 2011. INX was No. 167 on the VAR500 in 2010.
Over the last several years, Presidio has made several other acquisitions, including Ficomp, Networked Information Systems, Solarcom and Coleman Technologies. INX recently hired a new collaboration chief, who hinted that big changes needed to be made to stay relevant in the channel.
"The days of the VAR are going away fast," Steven Reese is INX's new vice president, Collaboration and Secured Architectures, said last month. "The solution integrator side is what's going to sustain, and the reseller side is dying. If you're a technology reseller trying to sell technology to a guy who cares nothing about technology, you're out."