Computer Services Inc. (CSI) is buying HEIT, a top managed services provider and cloud services provider focused on the financial services vertical. Computer Services is a publicly held bank services specialist that generates about $40 million in quarterly revenues. HEIT is an MSPmentor 100 company that has key executives on the MSPmentor 250 list. Here's a closer look at the CSI-HEIT deal.
CSI claims the HEIT buyout will make CSI "one of the largest cloud and managed service providers for financial institutions nationwide." I can't argue with that statement. The deal is expected to close on September 1, and I don't believe financial terms have been disclosed -- though we'll be poking through SEC filings to see if and financial details turn up.
By acquiring HEIT, CSI gains a recurring revenue stream that blankets more than 400 customers -- including community banks and credit unions. CSI -- which has delivered revenue growth for 28 consecutive quarters -- says HEIT will allow CSI to meet customers' compliance, security and infrastructure management needs.
Same Name, New TitleHEIT CEO Dan Holt will become general manager of CSI's managed services division. I need to double-check the potential role for Jeff Simpler, chief business development officer at HEIT. Simpler joined HEIT during a merger with Simpler-Webb in 2010. I also need to double-check HEIT's current staffing levels, and the potential transition into CSI.
Holt and Simpler have taken some unique steps to focus HEIT on the financial services vertical. The executives ensured that HEIT joined a range of financial services organizations and banking organizations -- networking with banking executives across the U.S. to promote HEIT's services.
To get a better feel for Holt and Simpler, check out this MSPmentor FastChat Video from September 2010 (roughly a year before CSI announced plans to acquire HEIT):