Getronics Expects $40M In Cost Synergies From Pomeroy Acquisition
European systems integrator Getronics Group is expecting $40 million in cost synergies from its acquisition of Pomeroy Group Holdings, according to a high-level source close to the deal.
The cost savings are sure to include financing, human resources, IT and even sales and services staffing, said the source. "This is the beginning of a long road for Pomeroy to get those cost synergies," said the source.
A Getronics spokesman did not respond to multiple attempts to reach the company for comment about its plans. At Clearlake, the company that owns Pomeroy, a spokeswoman said the person CRN needed to speak with was traveling and that person could also not be reached for comment.
The deal between the two companies, announced on Thursday, creates a $1.3 billion solution provider behemoth with 9,000 employees and coverage in more than 110 countries. Financial terms of the deal were not disclosed.
Peter Thelan, who has headed up the Pomeroy sales team for the last eight years, is leaving in the wake of the acquisition, the source said.
"Peter has strong and deep customer relationships and knowledge of the Pomeroy operations," said the source.
Chris Froman, who is widely credited with building Pomeroy into an MSP power house, is also leaving the company.
"Chris brought the company into the managed services market in a big way," said the source. "He understood the market trends and the value of bringing together best in class services with product sales. He was manical about the numbers and margins in the managed services and product businesses."
Froman was CEO from January 2009 to October 2017 when he took an executive chairman role on the company's board of directors.
Froman oversaw Pomeroy as it went private through a merger agreement with Platinum Equity in 2009, which valued the company at nearly $61 million. Six years later, he guided Pomeroy through another major transition as private equity firm Clearlake Capital acquired the company and merged it with retail partner Tolt Solutions to create a 4,000-employee, $1 billion channel giant.