Technology Integration Group (TIG), a San Diego-based solution provider, has acquired assets and contracts of fellow VAR Commercial Data Systems, according to the companies.
The agreement, for an undisclosed amount of money, allows TIG to expand its enterprise solutions and managed services capabilities as well as expand operations in several cities where it already has a presence, said Bruce Geier, CEO of TIG.
"It works out well for both parties. Gives us chance to grow and pick up new people," Geier said.
CDS also had several government contracts and TIG is taking "just about every person" into TIG too, Geier said.
"There are some great contracts there and it also helps us with Oracle and NetApp, two areas where we were not as strong. It definitely helps bolster us in working with both those companies," Geier said.
It's the 13th and largest acquistion for TIG and the third for the company in less than a year. Last summer, the company acquired Integrity Networking Systems, an Albuquerque, N.M.-based systems integrator, WAVEnet Technologies, a Pensacola, Fla.-based solution provider with three offices in Florida and Alabama.
"It's completely a buyer's market right now," Geier said. "Unfortunately for the smaller players, we've had a lot of cash crunches in this economy. The consequences are tighter control [of banks]. People aren't lending. It's not that [some VARs] are not doing well, but they don't have the cash to run the business. It's very unfortunate."
Geier said he gets almost one call a day from a VAR looking to sell itself.
"For those that do have the cash, it's a buyer's market. To be honest we're working on two other [acquisitions] right now," he said.
The CDS assets being acquired include an Albuquerque, N.M.-based management team of CDS president Jim Altamirano and vice president Tammy Byrd. In addition, TIG bought assets and employees in Virginia, Pennsylvania, Colorado, California and Hawaii. CDS's founders, Mark Wong and Guy Merola, will be leaving the company to pursue other interests.
CDS, founded in 1986, had $50 million in revenue in 2011, according to TIG. TIG reported about $344 million in sales last year, according to the company.