More UC Channel M&A: AGC Networks To Acquire Transcend United Technologies


Global technology solution provider AGC Networks is acquiring fellow solution provider Transcend United Technologies, both companies confirmed Tuesday. The deal marks the latest in a string of mergers and acquisitions to take place within the Unified Communications (UC) and, specifically, the Avaya channel.

Terms of the deal were not disclosed, but both AGC Networks and Transcend said it will boost their competitive edge, particularly within the UC space, and position them for growth.

AGC Networks, for its part, said the move will help fuel its expansion in the U.S. market, one of the 12 its Bhopal, India-based parent company AGC Networks Ltd. plays in globally.

[Related: Avaya Puts Cloud-Based Communications In Motion]

"[AGC Networks] is a company that has been really successful in primarily southern Asia, and when they look at their growth opportunities, they see this very large sandbox of IT spend, which is the U.S.," said Greg Forrest, president of AGC Networks' Americas unit. "The U.S. represents a significant amount of IT spend. So, for AGC, this [acquisition] is a great opportunity for us to grow our territory."

For Transcend, the acquisition by AGC represents an opportunity to tap into financial and other resources for growth that it may not have otherwise realized, explained Transcend CEO Rick Hirsh.

"We go together very well," Hirsh said of AGC, noting that, like Transcend, AGC is a big Avaya and ShoreTel partner. "We have had a very aggressive growth curve in the U.S., and we needed more financial resources. If you're going to achieve scale, you need resources to do that."

Hirsh said being acquired by AGC will specifically help Transcend grow in the UC space, all while being able to "keep one leg" firmly in the ShoreTel side of its business and one in the Avaya side.

"First and foremost, I think it's a UC strengthener," Hirsh said. "That's where most of our focus is, and AGC has been equally UC-weighted."

In addition to UC, both companies place a heavy focus on data center networking and infrastructure.

Hirsh said the acquisition will have minimal impact on existing Transcend United employees or customers. The Transcend United brand, however, will be folded in AGC Networks', and AGC's Forrest will lead the newly combined unit.

Hirsh's new title will be senior vice president of business development.

The UC and Avaya channel has seen a number of solution provider mergers and acquisitions over the past few years, several of which have involved Transcend. Most recently, Transcend acquired the converged networking business unit of Relational Technology Solutions, a solution provider based in Columbus, Ohio.

PUBLISHED MARCH 19, 2013