BLOOMFIELD HILLS – Logicalis, an international IT integration company, has acquired for $90 million Solution Technology, a privately held IBM solution provider and one of IBM’s top 10 Business Partners. The company will remain in Michigan.
Under the agreement, Solution Technology of Boca Raton, FL, will operate as a subsidiary of Logicalis until the end of 2004. In 2005, Logicalis will integrate the two companies, and create focused HP and IBM sales and technical divisions. Jeff Teeter of STI will become general manager and executive vice president of the IBM-focused division, while Kirk Zaranti of STI will become senior vice president of sales of the IBM-focused division.
Following the acquisition, Logicalis Group will have revenues approaching $400 million and more than 750 employees worldwide. Logicalis US will generate nearly $300 million of that total and have 350 employees.
STIs subsidiary, Mindgent, is not part of the deal and will remain an independent company. Most of STI’s employees will become part of Logicalis; associated staff reductions will only affect positions where there is a duplication of functions, affecting approximately 8 to 10 people over a 60- to 120-day period.
“Logicalis’ goal is and has always been to dramatically grow our revenue through the acquisition of complementary and very successful integrators of our top product lines, which include HP, IBM, Cisco and EMC,” said Logicalis CEO Mike Cox. “Our acquisition of STI quickly takes us to a whole new level in our IBM sales and service capabilities, while our pending acquisition of an HP solution provider underscores our ongoing commitment and dedication to HP as well.”
Both Logicalis and STI are customers of Arrow Electronics, a Colorado enterprise distributor, and the new Logicalis will continue to purchase its wares through Arrow’s Support Net (IBM-focused) and SBM (HP-focused) divisions.
Logicalis expects to continue making acquisitions, purchasing additional solution provider organizations with complementary vendor lines that will strengthen its product and service offerings as well as its geographic presence throughout the United States.
The Logicalis Group is a division of Datatec Limited, a $2 billion business listed on the Johannesburg Stock Exchange. With its international headquarters in the United Kingdom, Logicalis’ global revenue is approaching $400 million from operations in the U.S., UK, Argentina, Uruguay, Germany, Paraguay and Brazil.
