Minnesota VAR Marco Expands Reach With Acquisition

The deal expands Marco's reach into Southern Minnesota and Western Wisconsin and will allow Marco to bring new offerings into Rochester, Minn.-based Venture Computer Systems' current customer base, according to executives at both companies.

"The southwestern portion of Minnesota was very desirable to us and an area that we hadn't penetrated yet. They are a provider of business network design, data storage, IT consulting and support, much like one segment of our business," said Irv Kuch, director of training/sales manager at Marco, based in St. Cloud, Minn. "As we continue to grow, we find them to be a very strong fit with our ideals and how we like to help our customers. It was a very natural fit."

Marco, founded in 1930 as a typewriter company, has three distinct business units: IT equipment, copiers/printing and office furniture. It expects to do about $60 million in sales this year.

The two companies have known each other for years as VentureTech members, but it was only recently they started talking about a sale. The acquisition will give Marco almost 300 employees, Kuch said. Earlier this year, Marco acquired All-Star Digital, a Sioux Falls, S.D.-based copier solutions company.

Jeff Gau will remain CEO of Marco. Jon Eckhoff, CEO of Venture Computer Systems, will stay with Marco through an undetermined transition period and then hand the reins of that business under Marco to Judy Weller, who started as a sales associate at Venture Computer Systems more than a decade ago. "She eventually became a partner and vice president, and now I'm proud to call her my boss," Eckhoff said.

Eckhoff said the economic climate played a part in his decision to sell (for an undisclosed amount of cash) but the merger would have made sense under any conditions.

"While it hasn't been the easiest time to be a computer reseller, Marco is financially in a terrific position. They operate debt-free and are profitable. It may not be the best time to sell a company, but it's the right time," he said.

Eckhoff, 44, said he has no long-term plans following the period of integrating Venture Computer Systems into Marco.