Corporate Software, a pioneer in large-account reselling and software asset management, is about to be acquired by Level 3 Communications.
Level 3 will pony up about $89 million in cash for the company, which will become a wholly owned subsidiary, said Howard Diamond, CEO of Corporate Software.
"Corporate Software is still Corporate Software, I'm still running it, and the management team remains the same," Diamond said in an interview.
Diamond said the combination of Corporate Software and Level 3's existing (i)Structure group is a natural fit. "(i)Structure is an IT outsourcing group and for five years I've been preaching that through industry consolidation and outsourcing, [Corporate Software] would start looking more like an outsourcing organization than a sales organization," he said.
The widespread use of Internet downloads and price pressures have put large-account resellers like Corporate Software and Software Spectrum under the gun in recent years.
In its nearly 20 years of existence, Corporate Software has been public, private and acquired by R.R. Donnelley. A few years ago, Diamond led a management buyout of the company. The company pioneered the resale of volume software licensing and support.
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Slide Shows |
- Corporate Software Restructures
- Mort Rosenthal: The Software Salesman
- Cognizant Sales Soar, Exec Promotions Follow
- VAR500 Company EPAM Systems: IPO Update
- Level 3 To Acquire Software Spectrum, Merge With Corporate Software Subsidiary
- Corporate Software Gets Makeover
- Level 3's New Channel Chief Plots Growth Strategy With VARs
- Level 3 Executive Changes Include New Channel Chief
