Sirius Computer Solutions Acquires Varrow For Technology, Geography

Sirius Computer Solutions has made yet another acquisition, this time purchasing one of the nation's top virtualization and cloud technology solution providers.

Sirius, of San Antonio, Texas, on Friday said it acquired Greensboro, N.C.-based Varrow. Sirius did not disclose the purchase price.

The acquisition is both a technology move and a geography play, said Joe Mertens, president and CEO of Sirius.

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"Varrow has leadership in converged infrastructure," Mertens told CRN. "I believe they're the most technically certified systems integrator around VMware worldwide. We're looking to increase our technical skills in VMware and Citrix."

Varrow has a strong presence in the Carolinas and Virginia, as well as a presence in the Boston area, Mertens said. "We have been looking to beef up our East Coast business, and they are a key partner for a number of manufacturers," he said. "It's a perfect fit for us."

Actually, both are technically savvy solution providers. Mertens said that Sirius was named data center partner of the year for North America and central partner of the year at this week's Cisco Partner Summit. Varrow was named Cisco's Southeast services partner of the year at the conference, he said.

It was a good acquisition for both solution providers, said Marty Wolf, president of martinwolf, a San Ramon, Calif.-based adviser for mergers and acquisitions with years of experience working with channel partners.

"It was a smart move for both sides," Wolf said. "They're good companies. I know a lot of people looked at acquiring Varrow. And Sirius has a great track record with acquisitions."

Varrow has a lot of technological capabilities, Wolf said. "But Varrow was limited by its geography and by its product set," he said. "By combining with Sirius, which has a much larger footprint and product set, this acquisition will be good for both sides."

Sirius has had a strong partner in equity firm Thoma Bravo, which has had an equity stake in the solution provider since 2006. That partnership has helped Sirius grow, Wolf said. "I happen to think Thoma Bravo is one of the top equity firms around," he said. "Varrow is a nice asset. I expect more and accelerated acquisition activity for Sirius."

Sirius has made about 10 acquisitions over the years, the latest being the November acquisition of analytics firm Brightlight Consulting. Others include the 2010 acquisition of IBM partner MSI Systems Integrators and the 2007 acquisition of IBM partner DyComp.

Varrow brings to Sirius about 165 people, giving Sirius a total head count of about 1,500 people, Mertens said. While all the Varrow sales and technical people have been offered positions in Sirius, there is a small reduction in head count because of consolidation in back-office operations, he said.

All three managing partners of Varrow, including CEO Jeremiah Cook, will continue with Sirius and will become shareholders in the combined company, Mertens said.