Lumenate VP: Organic Growth Out, Acquisition-Based Growth In


Lumenate's DeYoung said that while he believed that acquisition was the best strategy to grow in the channel, he said that it has to be done in a careful and well-thought-out way. He said that Lumenate always works backwards, by first assessing a customer's needs and then looking at how the company can best meet those needs through acquisitions.

"It kind of goes back to the motivation of the ownership or the entity itself. I've had the opportunity to be in the channel for a long time and in the managed services for a long time, and in the channel, you have people who want to buy up companies with the idea of selling. ... That's not our motivation. Our motivation is to service the client and operate in the space. We believe the space is getting stronger for a certain type of partner," DeYoung said.

Because Lumenate is a private company, DeYoung said, it gives it a measure of business model flexibility to either acquire or take time to develop as necessary. He said that, with a public company, there is not necessarily the same luxury, because shareholders expect a certain amount of growth within a fixed time frame.

"We have no pressure to have to grow, which is great," DeYoung said.

PUBLISHED SEPT. 11, 2013