Forsythe Solutions Acquires National Business Group

Forsythe Solutions Group, a Skokie, Ill.-based solution provider, doubled its security business this week with the acquisition of National Business Group (NBG), an Atlanta-based supplier of security solutions.

Terms of the deal weren't disclosed. The acquisition of NBG--whose solutions are based on vendors such as Citrix Systems, Nokia, Check Point Software Technologies and RSA Security--doubles Forsythe's security business and makes the VAR one of the nation's largest Nokia and Check Point resellers, said David Nolan, vice president of services and networking at Forsythe.

"They're strong in security. We're strong in infrastructure," Nolan said. "They have strong relationships with many of the same vendors as us."

With a 60-person staff and annual revenue of about $40 million, NBG also gives Forsythe a strong presence in the Southeast for its storage and disaster-recovery service offerings, according to Nolan. In addition, NBG will bring critical mass to Forsythe's security certification training programs, which cover products from RSA Security, Check Point and Nokia, he said.

The acquisition is a growth transaction, not an industry consolidation play, Nolan noted. "There's a big upside for growth," he said. "The deal closed Monday, and already we've found opportunities that neither of us would have found alone."

The NBG deal is Forsythe's second security acquisition. In February 2002, Forsythe purchased the security and consulting services assets and contracts of Telenisus, a Chicago-based provider of solutions for conducting secure business over the Internet.

Although Forsythe is a large, well-established integrator, it has yet to show that it can be successful with security, said Gary Fish, CEO of FishNet Security, Kansas City, Kan., which also claims to be one of Check Point's largest North American resellers. "I don't know that a single acquisition is going to make them successful," he said. "We'll see."

Fish said integrators that focus on security, such as FishNet, have advantages over network integration firms adding security practices, such as the ability to partner with other solution providers and market their expertise. He said he tells customers, "Some companies have network security divisions. FishNet is a network security company. Who should you trust with your security?"

Nolan said that, rather than focus on point solutions, it is actually better to trust security to a solution provider who can make security a part of the entire infrastructure solution.

"Who would you trust?" he said. "I would think you would trust someone who understands the entire infrastructure. . . . You can't do security without understanding the entire infrastructure and everything that goes with it."

JOHN LONGWELL contributed to this story.