Presidio Quietly Acquires Fast-Growing Red Sky Solutions

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Presidio, a major nationwide solution provider, disclosed Thursday that it has acquired Red Sky Solutions, a small solution provider with a focus on cybersecurity services, managed services, and data center and cloud solutions.

Presidio CEO Bob Cagnazzi broke the news of the acquisition during the company's fiscal 2018 third quarter financial conference call.

"In early April, we acquired Red Sky Solutions, LLC, a fast growing solutions-driven company with a strong team that gives us an enhanced presence in the mountain states. This is consistent with our stated growth strategy of pursing complementary acquisitions. We are very excited to welcome the Red Sky team to Presidio," Cagnazzi said in a prepared statement.

[Related: Presidio CEO: Expect More Channel Acquisitions Ahead]

Neither Presidio or Red Sky responded to CRN requests for additional information by press time.

Financial details of the acquisition were not revealed.

New York-based Presidio was listed as No. 21 in CRN's Solution Provider 500 list.

Red Sky Solutions was listed as No. 37 in CRN's 2017 Fast Growth 150 list of solution providers.

Draper, Utah-based Red Sky Solutions focuses on cost-effective, security-forward IT strategy solutions, including consultation and implementation services centered around networking, storage, application delivery, and virtualization.

Presidio, which has acquired several solution providers in the past, became a publicly-listed company about a year ago, and has said it plans to make more such acquisitions in the future.

Presidio late last year acquired Emergent Networks, a provider of IT strategy, solutions and support. In Early 2016 it acquired Netech, a major Cisco solution provider based in Caledonia, Mich.

And in late 2015, Presidio acquired Sequoia Worldwide, a small developer of technologies for building private and hybrid clouds. Sequoia eventually became the cloud business unit of Presidio under the name Sequoia Cloud Solutions.

Earlier acquisitions included INX, Ficomp, Networked Information Systems, Solarcom, and Coleman Technologies.

Presidio on Thursday said during its quarterly financial analyst conference call that revenue for its third fiscal quarter 2018, which ended on March 31, reached $665.1 million, up 5.8 percent from the $628.8 million the company reported for its third fiscal quarter 2017.

The solution provider reported a GAAP net income of $600,000, or 1 cent per share, during the quarter, well up from a GAAP net loss of $15.0 million, or 20 cents per share, from the same period the year before. On a non-GAAP basis, the company reported net income of $26.9 million, or 28 cents per share, flat with the prior year's $26.8 million, or 28 cents a share.

Revenue growth came from strong digital infrastructure solutions sales and a higher proportion of services, but was tempered by a weakness in federal government sales and a drop in security solution sales.

Presidio revised its fiscal outlook for all of fiscal 2018 downward.

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