Managed services News
11:11’s Acquisition Spree Continues With Deal For Sungard’s Recovery Services
Joseph F. Kovar
‘The Sungard customer base, which has been built for decades, will bring us the ability to cross-sell our more modern solution sets. And when you are growing as fast as we are, it’s hard to keep up with the head count. So it’s helpful to us to get a large existing team,’ says Brett Diamond, CEO of managed infrastructure solution provider 11:11.
Managed infrastructure solution provider 11:11 this week said it plans to acquire the recovery services business of Sungard Availability Services, a move that will nearly triple the company’s head count while giving its customer base a huge boost.
The move follows 11:11’s successful bidding in August for the cloud and managed services business of Sungard Availability Services.
11:11 is a provider of fully integrated and unified networking and communications services and has a large data recovery service to go with it, said Brett Diamond, CEO of the Fairfield, N.J.-based solution provider.
Between Sungard Availability Services’ cloud and managed services business and recovery services business, 11:11 will be gaining an additional 700-plus new employees to add to its current roster of just over 400 people in the U.S. and globally, Diamond told CRN.
“Sungard’s cloud and managed services business is synergistic to what we provide clients today,” he said. “We’re getting some new solution sets, including Amazon Web Services and [Microsoft] Azure consulting groups, as well as a security team to expand our own team. And Sungard’s recovery services will add access to new services we didn’t have before.”
The Sungard Availability Services teams that will join 11:11 are fully functioning and operational, Diamond said.
“The Sungard customer base, which has been built for decades, will bring us the ability to cross-sell our more modern solution sets,” he said. “And when you are growing as fast as we are, it’s hard to keep up with the head count. So it’s helpful to us to get a large existing team.”
11:11, which was founded in 2020, has grown quickly in large part due to acquisitions.
The company in the fall of 2021 received a majority investment from Tiger Infrastructure Partners, a New York-based private equity company. In December 2021, it acquired Green Cloud Defense, a large cloud Infrastructure-as-a-Service provider.
11:11 in January 2022 completed its acquisition of iland, a global cloud service provider specializing in hosting for Infrastructure as a Service, Disaster Recovery as a Service and Backup as a Service.
The solution provider followed that up in May with the acquisition of managed service, cloud and connectivity assets from Unitas Global and Cleareon Fiber Networks, and in July acquired an MSP, Static1.
Diamond declined to discuss the cost of the Sungard Availability Services businesses given that 11:11 is a private company.
“I’ll tell you when we do an IPO,” he said. “We’re growing and are well set up financially. So we’re able to invest. And we’re profitable.”
Wayne, Pa.-based Sungard Availability Services has been on a long road of downsizing itself after its move in April of this year to file voluntary Chapter 11 petitions in the U.S. Bankruptcy Court in Houston, along with similar petitions in Canada and the U.K. The company had previously filed for Chapter 11 protection in May 2019 to eliminate long-term debt.
Sungard Availability Services in August unveiled the sale of a majority of its U.S. colocation and network business to Norwalk, Conn.-based 365 Data Centers.