INX Tuesday said it has acquired fellow Cisco Systems VAR NetTeks Technology Consultants in a move that expands its reach in the Northeast.
Through the acquisition, which closed Nov. 14, INX has acquired the operations of Boston-based NetTeks in a deal that includes $1.35 million in cash and 30,770 shares of INX common stock. NetTeks could receive an additional $2.8 million if certain performance targets are met over the next two years, INX said in a statement. Shares of INX traded up 36 cents at $5.84 Tuesday morning.
"INX is making a significant commitment to our presence and capability in the New England region. This acquisition, coupled with our existing Boston operations, will create one of our largest regions," said Mark Hilz, President and COO of INX, in the statement. "This acquisition significantly increases our presence with both the enterprise and midmarket customer segments in New England, and substantially increases our base of technical talent and the breadth and depth of services offerings in the region," he added.
Houston-based INX, No. 181 on the 2008 VARBusiness 500, is one of Cisco's more highly decorated partners, having earned the vendor's Gold certification badge as well as its top-level Master Security and Master Unified Communications specializations. NetTeks is a Cisco Silver partner with advanced specializations in security and unified communications.
"This should be good for my team, and INX is now one of the strongest Cisco VARs in the Northeast," said Ethan Simmons, president and CEO of NetTeks, via e-mail. Simmons is joining INX as vice president of New England sales operations in the INX Boston region.
NetTeks operations generated revenue of about $12.7 million for the 12 months ended Sept. 30. INX earlier this month reported 3Q revenue of $71.9 million and earnings of $426,000.
INX last Fall pushed into the New England region with its acquisition of Cisco Gold partner Select in an $8.5 million deal. Its most recent acquisition was the purchase of VMware solution provider AccessFlow, Sacramento, Calif., in June.
NetTeks in June 2006 had planned a merger with fellow Cisco VAR NWN, Waltham, Mass., but that deal was called off three months later after the companies were unable to come to terms.