Can two managed services providers really merge to conquer a single vertical market? Before you answer, consider the situation at HEIT and Simpler-Webb, which are merging to serve community banks and credit unions across the United States. In this MSPmentor FastChat Video, HEIT CEO Dan Holt and Simpler-Webb Co-Founder Jeff Simpler describe why they are combining forces and the opportunities ahead -- including virtualization, backup and other services in the cloud.
The merged companies plan to operate under the HEIT brand. And the seem to have hit the ground running. The day the merger was announced, both companies were already operating on an integrated email system and a single phone system. So, what's the strategy going forward? Check out this FastChat video:
Within the video, HEIT and Simpler-Webb cover:
- 0:00 - What promoted the merger?
- 0:45 - The shift to cloud-based services, and the opportunity for HEIT
- 1:00 - The art of communicating an M&A deal to customers
- 1:30 - How will HEIT's customers -- community banks and credit unions -- benefit from the merger?
- 1:45 - What HEIT brings to the table, and what Simpler-Webb brings to the table
- 2:30 - Company size and national reach
- 2:45 - Contact info and conclusion
Reality CheckI must concede: I'm familiar with Dan Holt and HEIT, but less familiar with Jeff Simpler and Simpler-Webb. On Tuesday, a few sources told me both companies bring real financial services expertise to the managed services table. And it sounds like the company integration really is happening from day one.
Still, I always worry when two companies present a business combo as a "merger." Ultimately, somebody has to take control and lead the merger, and one company culture becomes dominant.
Success or failure will likely involve clear job descriptions and responsibilities for Holt and Simpler. While Holt remains CEO of HEIT, Simpler steps in as chief business development officer. We look forward to hearing about their business relationship -- and HEIT's performance -- in the months to come.
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