Top Channel M&A Transactions Of The Past 12 Months

You've Got A Deal!

Regardless of strategy, solution providers of different types continue to look toward mergers and acquisitions as a means of adding new technologies, enhancing business model transformation or extending into new geographical areas. In many cases, such moves are easier and more cost-effective than trying to attain the same objectives through organic growth. For other solution providers, M&A is a way to cash out. CRN takes a look at some of the M&A transactions that have made headlines over the past 12 months.

AGC Networks Boosts Its UC Play

AGC Networks announced its acquisition of Transcend United Technologies on March 19 as part of an overall growth strategy targeting unified communications. Terms of the agreement were not disclosed, but the combined company expects to strengthen its UC position, particularly in the United States. Though AGC Networks is based in a Dallas suburb, its parent company is based in Bhopal, India, and has thus far found higher levels of success in international markets, especially south Asia. In addition to UC, both companies pursue business opportunities in data center networking and infrastructure.

All Covered Extends Vertical Position

All Covered, a Foster City, Calif.-based division of Konica Minolta, acquired New Jersey-based United Computer Sales and Service in April. The purchase, for an undisclosed price, strengthens All Covered's managed services practice in the financial services and local government markets, particularly in the areas of security and compliance. United Computer provides remote call center support, software and data communications, network design and implementation, disaster recovery, IT security, and audit and compliance services in a four-state region.

Cloud Sherpas Gains ServiceNow Business

Cloud Sherpas, which recently completed the integration of Navigis, expects to add an entirely new ServiceNow component to its cloud services broker business. The acquisition of Navigis, which was completed in December for an undisclosed sum, supplements a service list that already includes the offerings of major players such as Google and Salesforce. Cloud Sherpas provides cloud strategy services, as well as software sales and implementation, customization, and support services. Navigis came to the table with more than 300 ServiceNow customers. The combined company is currently planning various efforts toward international sales expansion.

Datalink Extends Eastern US Position

In a move intended to shore up its position in the eastern and southeastern United States, Datalink, a Eden Prairie, Minn.-based solution provider, acquired StraTech last October for approximately $20 million. The North Carolina-based company formerly known as Strategic Technologies is a substantial expansion play for Datalink, representing about 400 customers and $65 million in product and service revenue with minimal overlap. The two companies also share key vendor alliances with companies such as Hitachi Data Systems, NetApp and Symantec. The combined company plans to focus on optimizing enterprise data centers and IT infrastructure.

Ingram Micro Adds Mobility Services

Ingram Micro's acquisition of BrightPoint last year enhanced the Santa Ana, Calif.-based distributor's competitive position in the rapidly growing mobility space. The $840 million deal, which was completed in October, extends Ingram's lifecycle services portfolio into the mobility space while at the same time providing a venue to strengthen relationships with key vendors, network operators and mobile virtual network operators. BrightPoint reports more than 25,000 business-to-business customers and sales in more than 75 countries.

Net@Work Targets Nonprofits

Net@Work, a prominent New York-based Sage Software channel partner, is extending into new markets through its April acquisition of Huckstep & Associates for an undisclosed price. The acquired company provides office-related services, such as accounting, human resource management and software implementation services, targeting nonprofit organizations and government agencies. Huckstep has a roster of more than 350 NPOs and public sector customers in 35 states. Net@Work already provides a variety of channel services, such as systems integration, Web development, e-commerce, content management and business applications services.

Perficient Expands Service Offerings

Perficient, a St. Louis-based solution provider, inked two deals in May. On May 2, the company announced the acquisition of TriTek, an IBM- focused enterprise content management and business process management consulting firm for approximately $18.5 million. Then on May 17, Perficient announced its purchase of Clear Task, a San Francisco-based provider of consulting services for cloud applications. Perficient, which paid roughly $7.9 million for Clear Task, has cloud service capabilities built around products from IBM, Microsoft, Oracle and

Sysorex Diversifies

Sysorex Global Holdings, a Santa Clara, Calif.-based solution provider that focuses primarily on the government market, in April acquired Lilien in a move that adds commercial businesses to its customer set as well as additional private sector expertise to the Sysorex team. Lilien also adds traditional storage, networking, server and workstation capabilities that are expected to be useful, especially as the Sysorex government contracts come up for renewal. The acquisition also beefs up Sysorex's position in analytics, big data and security. Financial terms were not disclosed.

M&A Swap: THL Acquires CompuCom

CompuCom Systems announced last April that Thomas H. Lee Partners, a Boston-based private equity firm, will acquire the Dallas-based solution provider from Court Square Capital Partners, based in New York City. Financial terms of the agreement were officially undisclosed, but CNN and Fortune reported that the transaction was worth an estimated $1.1 billion, compared to the $504 million Court Square paid for the company back in 2007. Over the past several years, CompuCom has focused on the cloud transformation as a major part of its ongoing effort to differentiate itself. Mobility is another important area upon which the company seeks to capitalize.

Westcon Group Extends International Position

The Westcon Group bolstered its position in Latin America, Spain and North Africa last year through its acquisition of the Afina Group, a Madrid-based value-added distributor that focuses primarily on security and data center solutions. The move also brought new prominent vendors into the Westcon fold, including Citrix, Symantec and VMware. In addition to distribution services, the acquired company also provides post-sales support, training and other partner benefits. The agreement puts the Tarrytown, N.Y.-based distributor in a stronger position to capitalize on the rising IT spend in Latin America, particularly in Brazil and Mexico.