Logicalis on Monday said it plans to acquire Alliance Consulting’s Southwest region business.
The Bloomfield Hills, Mich.-based systems integrator said the move will bolster its Contract Consulting Services Group (CCSG) and put the company on track to reach nearly $500 million in revenue this year.
Logicalis CTO Jeff Reed said the acquisition will add 70 consultants to the CCSG, bringing the group’s total number to more than 250 and pushing annual sales for the unit to about $50 million. He declined to disclose terms of the deal.
“Our plan is to take business away from staffing companies,” Reed said. Logicalis is a multivendor integrator with a growing managed services and consulting business, and to attract new accounts the integrator plans to target companies looking to contract out IT staff and to offer product rebates, he said.
Likewise, for current Logicalis product and integration customers, Reed said he could offer rebates on managed services and consulting for customers seeking to outsource IT staff. Logicalis offers volume purchase rebates of up to 4 percent when customers opt for a combined portfolio of product and services.
“Most VARs don’t have contract consulting arms, and we intend to leverage this to grow our business,” Reed said.
Logicalis’ overall business is 85 percent products and 15 percent services, but the company’s growing services business puts it on track to increase the product/services mix to 80/20 in three to five years, according to Reed.
The Alliance Southwest division will become part of Logicalis CCSG and be led by Chris Rafter, vice president of consulting services of Alliance, and Marney Edwards, Alliance’s vice president of sales for the Western region. Both will report to Reed.
The acquisition will strengthen Logicalis’ business in Phoenix, Dallas and Los Angeles, Reed said. Logicalis will continue to buy managed services companies, but those efforts will be “a little pickup here and there” rather than a major national acquisition, he added.