INX Merger Gives Presidio National Reach3:42 PM EST Tue. Nov. 01, 2011
Presidio Network Solutions' acquisition of INX will give the VAR national reach after the deal closes, according to executives.
Earlier Tuesday, Presidio has agreed to purchase INX for $8.75 per share, or about $85 million. Presidio has 31 regional offices, most of them in the East and South. The VAR has one office is in Southern California and three in Texas, but didn't have a large presence in the West.
Meanwhile, 16 of INX's 20 offices are located west of the Mississippi, from Texas to California.
"They're concentrated primarily in West. We're concentrated primarily in the East. There's a lot of good [synergy] there. Having more geographic breadth opens up a lot of opportunities for us," said John DeSarbo, senior vice president of marketing at Presidio.
Both companies have similar vendor and solutions portfolios and are top Cisco Systems, EMC, NetApp and VMware partners.
"Obviously we're very excited. There's lots of cultural alignment and we complement each other in multiple ways in all our business units. It's a great opportunity for both organizations. I believe our business models are very much aligned," French said.
Added DeSarbo, "The practices that we both built around data center, virtualization, cloud, collaboration, security, core network infrastructure, there's a lot of synergy between two companies, a lot of growth in those two areas. That's one of the reasons why we did this. We saw they were focused in the right spaces and we are as well."
Presidio has made several acquisitions over the last five years, but INX would be their first since Coleman Technology Partners at the end of 2009. The company has spent much of the last two years focusing on organic growth, DeSarbo said.
DeSarbo and Mike French, senior vice president of marketing at INX, declined to detail how and where the new Presidio would look because the deal has not closed.
The acquisition is expected to close early in 2012, according to the companies.