Managed services firm All Covered has made two more solution provider acquisitions, buying LAN Associates of New York and PMV Technologies of Detroit.
All Covered has been on an aggressive acquisition strategy over the last two years, buying regional solution providers and MSPs across North America. All Covered itself was acquired by Konica Minolta earlier this year, and the company, which is now a subsidiary of Konica Minolta Business Solutions, has accelerated its buying spree and is now eyeing larger acquisition targets.
"The consolidation in the channel continues. Now we're seeing larger, more profitable solution providers that are either going to heavily invest in growth or sell their businesses," said Todd Croteau, president of All Covered. "In a lot of cases, those companies are opting for less risk and are open to selling."
Two such companies are LAN Associates and PMV Technologies. LAN Associates, founded in 1984, specializes in IT services for the legal market such as document management, document imaging, and e-discovery solutions. Croteau said the addition of LAN Associates will significantly boost All Covered offerings to law firms and other legal clients.
"We want to acquire companies with specific vertical expertise," Croteau said. "LAN Associates is obviously strong in the legal market, and they will bring that knowledge and expertise to the company."
LAN Associates President and CEO Richard Schulman said he had been getting five or six calls a month from suitors looking to buy his company, but he wasn't interested. "We weren't looking to sell and get out of the business. We hadn't had any real conversations about selling the company outside of All Covered," he said. "But once I did some research and had conversations with Todd, it was a done deal."
Schulman said LAN Associates' document imaging practice made the company a good fit for Konica Minolta. He also said being part of All Covered will give him a chance to expand LAN Associates' legal practices beyond the New York area and Mid-Atlantic region."We've already been contacted to assist clients in Chicago and Boston, so we're excited," Schulman said.
Along with LAN Associates, All Covered also recently bought PMV Technologies, which specializes in managed services in the Midwest region. PMV was the result of a merger between solution provider O/E Systems and accounting firm Plante & Moran in 2004. All Covered said the addition of PMV will strengthen its business in verticals such as financial services and healthcare in the Detroit area.
Croteau said All Covered will continue to look for potential acquisitions with vertical expertise and strong regional practices in areas where it lacks a presence. He said the company was on track to double its size within 12 months.