Sirius Computer Solutions has struck a "definitive agreement" to acquire Forsythe Technology creating a $3.26 billion behemoth that ranks as the 20th largest solution provider in North America.
"I am very pleased to announce that Forsythe has signed a definitive agreement to be acquired by Sirius Computer Solutions," Forsythe CEO Bill Brennan wrote in an email to all employees Thursday. "This puts us in a great position to scale our business and extend our geographic reach."
The deal combines Sirius, one of IBM's top partners, No. 26 on the CRN SP500, with Forsythe, No. 37 on the CRN SP500, one of biggest security integrators in North America.
The deal catapults the combined company to No. 20 on the CRN SP500 ahead of Unisys, Presidio and Connection.
Sirius is owned by private equity firms, with workhorse Kelso & Co. scooping up the San Antonio, Tex.-based company for $830 million in September 2015.
Skokie, Ill.-based Forsythe, has the unusual distinction of being 100 percent employee-owned.
The acquisition is subject to regulatory approval and expected to close Oct. 31, Brennan told Forsythe employees.
Sirius and Kelso declined to comment for this story, while Forsythe and IBM didn't immediately respond to requests for comment. CRN reported in June that Forsythe was up for sale, and then in August that Sirius was in negotiations to purchase Forsythe.
Forsythe is one of the largest security integrators in North America, one source close to the company said. All told, the two security practices combined account for $510 million.
"The security practices are big in both companies, and that's going to be an interesting integration," the source said, noting that overall there is "significant overlap" between the two companies.