VAR500: CDW Revenue Up; Agilysys Sells TSG Unit

VAR500 Solution Providers See Sales Up, Geographies Expand

Earnings reports came out for many IT solution providers during the past week, and VAR500 companies had a lot to be happy about. Sales were up and the outlook seems better than it has in some time. Much of that growth is due to cloud and health care solutions. Also, a number of VARs made deals that increase their customer base. And one tech company gives back to the community to commemorate its 20 years in business.

CDW Reports Strong Quarterly Growth

VAR500 solution provider CDW saw solid growth in its most recent quarter, according to its earnings report released Monday. Total net sales in the second quarter of 2011 were $2.412 billion compared with $2.223 billion in the second quarter of 2010, an increase of 8.5 percent.

’While the macro-economic environment continues to be mixed, CDW delivered solid revenue growth driven by strength in our medium/large, small business and health care channels,’ said Thomas E. Richards, president and chief operating officer. ’Our public segment returned to growth in the second quarter as the year-over-year performance improved for our government and education channels compared to the first quarter of 2011."


Agilysys Sells TSG Unit

Agilysys today completed the sale of its Technology Solutions Group to OnX Technology, wrapping up the $64 million deal it announced in early June. The agreement makes OnX one of the world's largest independent, multi-vendor enterprise data center solutions providers. The IT solution provider will have combined revenue of $750 million, a global team of more than 500 associates and certified partnerships with all the leading IT vendors.

IBM Nurtures IT Innovation

In a move that will speed up the expansion of real-time analytics and software automation in IBM's technology services offerings and its global services delivery capabilities, the VAR500 IT solution provider has created a Services Innovation Lab (SIL). Roughly 200 technology experts, hand-picked from around the company, will take part. The initial focus of the SIL projects includes cloud computing, Advanced Analytics, Service Delivery Automation; and Enterprise Mobilization and Smarter Planet, an initiative focused on helping services clients capitalize on mobile technologies.

Cerner: Right Place, Right Time

Cerner, a VAR500 IT solution provider specializing in health care solutions, reported late last week that revenue jumped 15 percent to $524.2 million. The IT solution provider offers technology that is used in many hospitals, and is positioned to take advantage of federal government spending that encourages hospitals to make record-keeping systems electronic.

"We expect our market opportunity to remain robust for years to come as we benefit from demand driven by stimulus, health care reform, and other regulatory requirements," said Neal Patterson, Cerner chairman, CEO, president and co-founder.

CapGemini Revenue Up

VAR500 IT solution provider CapGemini late last week announced earnings had increased 12.5 percent to $6.86 billion in the first half of 2011, with 8.4 percent of that growth in the second quarter. Technology Services, which enjoyed an increase in its rate of growth in the half-year, reported the highest growth in revenue of the group businesses, at 9.6 percent. The IT solution provider recruited close to 16,500 employees during the half-year, up nearly 20 percent from June 2010.

HP's Mphasis Buys Insurance Specialist

HP-owned IT services provider MphasiS bought $30 million U.S.-based insurance solution provider Wyde Corp. The deal will solidify the IT solution provider's insurance business, providing access to new geographies and clients.

Wyde has 25 clients, and is a player in the mid-market segment, as well as a geographic presence in Vietnam. MphasiS did not disclose how much it paid for Wyde.

Cognizant Buys Indian IT Solution Provider

Cognizant Technology Solutions last week announced it would buy the India-based captive operations of CoreLogic, CoreLogic Global Services Private Ltd., in a cash deal valued at approximately $50 million. Cognizant, a VAR500 IT solution provider based in New Jersey, already has a sizeable footprint in India, with most of its software development taking place in that nation. CoreLogic Global Services is focused primarily on the U.S. mortgage and real estate markets. The deal, which is expected to close this month, provides that CoreLogic and Cognizant will enter into a services agreement with a minimum revenue commitment of roughly $324 million over seven years with certain renewal and extension rights.

DLT Celebrates 20 Years By Promoting Volunteer Work

To commemorate its 20th Anniversary, DLT Solutions, an IT solution provider, launched the "DLT 20/20 Program" — a community service program that lets employees volunteer up to 20 hours on company time in their local communities, at a registered, non-profit organization of their choosing. The goal is to give at least 5,000 hours of community service between August 1 and December 31 of 2011. The program complements the work the VAR500 company already is involved in: Monthly, a team of DLT volunteers works at Martha's Table in DC, and DLT supports multiple local charities annually, through the company's charitable organization, the DLT Foundation.