SWK Technologies Acquires Some HighTower Assets, Offers Customer Support

SWK Technologies is acquiring some assets of HighTower Inc., the Chicago-area solution provider and leading Sage North America partner that shut down last week amid reports of financial difficulties.

In an interview Monday, SWK CEO Jeff Roth said his Livingston, N.J.-based company is buying some HighTower assets, including intellectual property such as software enhancements the Skokie, Ill.-based company developed for Sage applications, and HighTower's customer accounts. Roth said SWK also would be hiring some HighTower staff.

"Right now those documents are signed," Roth said, adding that he's already in communication with Sage, as well as HighTower executives, customers and partners, about the transition.

HighTower suddenly closed its doors last week. Notices posted Friday on SWK and HighTower Web sites, and a recording on Hightower's main phone line, said SWK was taking over support of HighTower's customers. But with the agreement disclosed today SWK is going beyond supporting HighTower customers to actually taking over part of the HighTower business.

Roth said SWK is not assuming any of HighTower's liabilities under the agreement. HighTower had sales of $3.3 million in 2011.

HighTower was co-founded in 1987 by CEO Jeffrey Rosengarden and President Robert Nordin. They have not returned emailed requests for comment.

HighTower was an ERP systems consultant and developer that resold a range of Sage products, including its MAS 90, MAS 200 and MAS 500 ERP applications and the company's SalesLogix and Sage CRM software. In November Sage North America designated HighTower, a Gold level partner, as one of 60 members of its President's Circle of business partners that generate the highest revenue across a range of product categories.

HighTower also partnered with cloud application vendor NetSuite, business software developer Syspro, Microsoft, Symantec and Citrix, among others.

"We’re aware of the situation at Hightower and are closely monitoring it to ensure customers are able to get the support they need," said a Sage spokesperson late Friday.

"Since 1999, HighTower has partnered with SWK Technologies, a leading Sage developer and business partner, to better serve our mutual clients," reads a notice on the HighTower Web site. "Effective today, Friday March 23, 2012, SWK will be handling all HighTower client support, as well as supporting resellers of HighTower enhancements."

SWK is also a Sage North America channel partner, working with many of the same Sage ERP and CRM applications as HighTower. And like HighTower SWK is a member of Sage's President's Circle of partners. The company has more than a dozen regional offices, sales offices and support centers across the U.S. and supports customers throughout the country, according to its Web site.

The HighTower Web site notice said that SWK will provide telephone and remote support from Monday through Friday, between 8:30 A.M. and 5:30 P.M. ET. "Calls will be handled on a first come, first served basis, with special consideration to mission-critical issues," according to the notice. It provides a phone number (877.979.5462), email address ([email protected]) and the SWK Support Portal (http://support.swktech.com) as options for HighTower customers.

HighTower's shutdown is reminiscent of the sudden collapse of MIS Group, one of Sage's largest channel partners, in July 2009.