IBM's largest solution provider, Sirius Computer Solutions (VARBusiness 500 rank #77), has acquired fellow IBM reseller, Strategic Computer Solutions (SCS). As a result, Sirius will add more than 130 sales and technologists in the Northeast and shore up its IBM middleware and security practices, as well as its federal government technology solutions expertise. Both are privately held.
In November, Sirius obtained venture capital funding to invest in expansion efforts. Joe Mertens, executive vice president of business development, says Sirius is looking for two things when evaluating companies for purchase: "Either the company will fill geographic holes for us, or they have specific skills. SCS has both... We were relatively weak north of New York City. SCS' strength is New York City and New England. They are the strongest IBM Websphere commerce partner in the geography."
Sirius has made other moves this year to strengthen the Northeast territory. In January, it named 24-year IBM veteran Brian Bardinelli area sales manager for Sirius' Northeast region. The following month, Tenney Browne, another former IBM alumnus, also joined as area sales manager for the Northeast.
Recently, SCS began a more aggressive push into the government sector, both in the state and local as well as federal space. The solution provider sells all five IBM software brands, including WebSphere, Lotus, Tivoli, Rational and DB2, and is a five-star IBM VAP, a recognition awarded to only five software VARs worldwide. Further, SCS (VARBusiness 500 rank #227) experienced 15 percent growth from 2005 to 2006, with revenue climbing from $86 million to $99 million. That all made SCS very attractive to Sirius.
SCS got on Sirius' radar as a possible acquisition target as result of Mertens and Jim Carrick, president of SCS, both serving on IBM's solution provider advisory council. According to Mertens, Carrick will be staying on at the company, with responsibilities for running Sirius' sales team.
"The management team is staying onboard and we are starting integration of both teams," he says. "We are excited. We have great skills and great people."
SCS will be immediately incorporated into Sirius, and will do business as Sirius Computer Solutions. SCS' employees will also join Sirius.