MTM Acquires Citrix integrator Vector ESP

Stamford, Conn.-based MTM, provides a range of IT networking and data center services, including storage, security, messaging and VOIP solutions.

MTM officials plan to use Vector to help expand MTM's presence from its current locations in New York, southern New England and Southern California to 12 additional major metropolitan markets, including Houston, Dallas, Chicago, Cincinnati, St. Louis, San Francisco, Portland and Seattle.

Tom Flink, Vector president and COO, along with senior Vector managers, are expected to join MTM Technologies and lead its Central Region operations, MTM officials said.

"We are aggressively building out our national services footprint and Vector will add to MTM Technologies' presence in major metropolitan markets," said Francis J. Alfano, MTM Technologies' CEO, in a statement. "The acquisition of Vector will provide us with nationally recognized technical capabilities in secure access solutions as an elite partner with Citrix and Microsoft." The deal, which is subject to conditions, consists of $16.8 million in cash, promissory notes with a principal value of $700,000 and $2 million in MTM stock. Vector shareholders will retain the cash on hand at Vector at the time of close and may be eligible for up to an additional $3 million for meeting certain profitability thresholds in 2005.

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MTM shares closed Friday at $5.85, up from $4.55 on Thursday before the deal was announced.