Forsythe Gets $97.5M Line Of Credit, Makes Growth Plans

The Skokie, Ill.-based solution provider and IT infrastructure integrator this week unveiled the closing of a three-and-a-half-year revolving line of credit that will enable it to grow its business both organically and through possible acquisitions, said Michael Qualley, senior vice president of the company's Systems Solutions Group.

The fund is not a loan, Qualley said. Rather, it is a credit line that will be used as operating funds and to grow the business. "This is something we've been doing for 20 years," Qualley said. "It's business as usual for us."

What is unusual is that Forsythe managed to get the line of credit from Bank of America, U.S. Bank, Wells Fargo Bank and The PrivateBank and Trust Company despite the drying up of credit in the face of the current economic crisis.

"We wanted to make sure we have a line of credit while credit was still available," Qualley said. "A lot of companies don't have it."

Qualley said he is not totally sure how Forsythe was able to secure the new $97.5 million line of credit given the current economic situation. "If I knew that, I'd be able to tell the future," he said. "But from my perspective, it had to do with our growth, our earnings and our track record."

Forsythe, which in 2006 went through an employee buyout, has enjoyed double-digit growth in the last couple of years, including 11 percent growth in 2008 over 2007, and is planning for growth this year, Qualley said.

"But we look at it on a monthly basis to see what's reality," he said. We had a nice pipeline going into 2009. And January of 2009 had year-to-year growth."

Forsythe, which has acquired four companies in the last seven years, could also see new growth come from further acquisitions, Qualley said.

"We're not sure what our appetite for acquisitions will be in the next couple quarters," he said. "But when the economy settles, we won't need to look for additional lines of credit."

Forsythe's growth comes from its ability to offer full solutions in such areas as storage and security, including professional services, product resale and leasing, Qualley said. The professional services part of the business is growing the fastest, and it is helping drive product sales. "We're not just selling products," he said. "We're trying to solve customer problems."

Forsythe is ranked number 90 on the 2008 VARBusiness 500 ranking of the top 500 business and technology integrators.