Comm-Works Aims To Create A $100M Powerhouse With Network Access Products Acquisition

In a move to boost its growing managed services offerings, global IT services company Comm-Works said it has acquired Network Access Products Inc. for an undisclosed sum.

The acquisition, which Comm-Works announced Tuesday, will strengthen the organization with a second 24/7 network operations center (NOC) based in Ft. Myers, Fla., and some new Fortune 500 customers, establishing Comm-Works as a player in the increasingly competitive managed services space.

"The highest priority from our target market and perspective is to beef up our NOC capabilities, and managed services offerings and the only way we can do that is through the addition of talent, tools and customers," Comm-Works CEO Alan Lampe said in an interview with CRN.

[Related: CRN's 2017 Managed Service Provider 500]

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The deal, which took effect March 2, was funded internally by Comm-Works, which was featured on the Elite 150 category of CRN’s MSP 500 list. Additional financial details about the deal were not disclosed.

Comm-Works has focused on organically growing its managed services over the last two years. However, Lampe said that with this acquisition, the company’s managed services will become much stronger.

With the addition of NAP, a veteran managed service provider, Comm-Works is accumulating real industry experience that is trusted by NAP’s Fortune 500 customers.

Now, with NAP’s customers and experience, Lampe said Comm-Works is gaining the credibility that NAP’s managed services has, which he said gives his company a "tremendous advantage in the marketplace."

Following the integration of the two companies, Lampe said he expects the new organization to create a revenue of over $100 million annually.

He said he is seeing the managed service industry grow, and expects it will continue growing thanks to the need for continuous network connectivity and management with the emergence of Internet of Things (IoT) technologies.

When the integration of the two companies is completed, Comm-Works will add all 60 NAP employees to its 260-person staff, bringing all of those based in NAP’s Ramsey, Minn. headquarters to Comm-Works' home facility in Minneapolis.

During the integration process, he said NAP’s CEO Tom Knoll will step down but will be retained as a consultant during the integration.

Doug Plooster, president of NAP, said he will be taking on a sales leadership role at Comm-Works following the integration, and employees from NAP will come in to lead Comm-Works helpdesk and NOC management organizations.

"This is a pretty good marriage for us, its strong from an IT services standpoint and a management standpoint," he said.