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India IT services giant Rolta, one of the top Oracle services partners in the world, is acquiring SP500 infrastructure power AdvizeX Technologies LLC in an ambitious bid to "redefine the IT channel" for the future.
Rolta International Inc., an Alpharetta, Ga.-based subsidiary of Mumbai, India-based Rolta India Ltd., is paying $32 million for AT Solutions Group, LLC, the parent company of AdvizeX Technologies LLC.
Ultimately, the deal creates a nearly $500 million international power with nearly 4,000 employees, combining multinational system integration giant Rolta India Ltd. with $336 million in annual sales and 3,700 employees with widely respected CRN Tech Elite 250 power AdvizeX, which was No. 113 on the SP500 list last year with $147 million in annual sales and about 200 employees.
[Related: BoB Conference: Solution Providers Face Big Existential Questions About M&A]
"We are going to be the first company to put a major effort behind combining a leading system integrator and VAR to attack this software-defined data center opportunity," said AdvizeX President Fred Traversi in an interview with CRN. "I told our AdvizeX employees that our customers and OEM partners are going to require a redefinition of the IT channel as it stands today."
The deal paves the way for Rolta-AdvizeX to provide a new level of "technical innovation" as it moves to grab more share in the software-defined data center market, said Traversi. "These new applications are redefining where companies compete," he said. "A traditional VAR and SI couldn't do it by themselves."
The deal puts Rolta-AdvizeX squarely into the big data, business intelligence markets being dominated by high-priced services giants like IBM, Accenture and Computer Sciences Corp.
With social media driving a whole new set of applications focused on big data and business intelligence for enterprise businesses, Rolta and AdvizeX are aiming to bring a new generation of unstructured data solutions and services to enterprise customers looking to provide real-time customer decision solutions in markets like retail and financial services.
"To us this is just the next phase of the growth for AdvizeX," said Traversi, who has headed the 37-year-old company for the last nine years. "Everyone at AdvizeX is very excited. This is about accelerating growth. This is about broadening our value proposition to our customers and extending our reach to more customers."
Rolta International President of International Operations Ben Eazzetta told CRN the deal was driven by a major market move toward engineered systems: complete hardware/software systems, such as Oracle's Exadata Database Machine and Oracle Exalogic Elastic Cloud servers.
Eazzetta confirmed the $32 million acquisition price but said that figure is a maximum that does not include cash and working capital inside AdvizeX; it does, however, include full escrow and "earn out."
NEXT: Rolta-AdvizeX Deal Aims To Capitalize On Engineered Systems Trend
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