Two VAR500 Companies Merge; Form Managed Services GiantTwo VAR500 Companies Merge; Form Managed Services Giant
Just when I was set to unplug for the night, I noticed another managed services industry merger -- the second of the day. This one involves Presidio Inc. and Coleman Technologies Inc. -- two VAR500 companies. The duo will combine to create a $1.1 billion Cisco-centric managed service provider that also has VMware, HP and Microsoft expertise.
January 7, 2010
managed_services_mergerJust when I was set to unplug for the night, I noticed another managed services industry merger — the second of the day. This one involves Presidio Inc. and Coleman Technologies Inc. — two VAR500 companies. The duo will combine to create a $1.1 billion Cisco-centric managed service provider that also has VMware, HP and Microsoft expertise. Here are the preliminary details plus some analysis.
According to a joint press release: Presidio (a diversified professional and managed services firm) has acquired Coleman (an IT and systems engineering services firm).
Coleman will complement Presidio’s existing business lines, including:
Presidio Networked Solutions, a professional services and advanced IT infrastructure solutions provider;
Presidio Managed Networks, a Managed Services and Telecom Consulting firm;
Atlantix Global, a provider of remarketed technology solutions; and
Presidio Technology Capital, a captive leasing operation.
Now some fast stats from the release. The combined companies…
will have revenues of more than (U.S.)$1.1 billion
features 70 Cisco CCIEs and 1,200 employees
will rank as one of Cisco’s top five North American channel partners, with additional partners including VMware and Microsoft
ranks among Cisco’s first VBlock 2 partners
Alas, I didn’t spot any M&A multiples or selling price — so it’s difficult (impossible?) to say if Presidio paid a premium for Coleman. And I must concede: I’m not familiar with either company’s profitability metrics.
Revenues Down A Bit?
At $1.1 billion in combined revenue this is a big deal — though revenues from one or both companies apparently declined in 2009. How do I know? Here’s the quick math:
Presidio was ranked No. 91 in the 2009 VAR500, generating $947.7 million in annual revenue for 2008.
Coleman Technologies was ranked No. 171 in the 2009 VAR500, generating $276.7 million in annual revenue for 2008.
Quick math from the 2008 revenue figures ($947 million + $276 million = $1.223 billion) suggests one or both companies saw their revenue shrink in 2009 (since Presidio and Coleman say they have a combined $1.1 billion in revenues).
This is the second MSP-oriented merger/acquisition of the day. The other deal involved FusionStorm, an MSPmentor 100 company, swallowing CentriServ, a consulting company that specializes in client-side virtualization. It was FusionStorm’s second acquisition in recent months.
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