ConvergeOne Announces Planned Acquisition of Venture Technologies
- Equity Value: $92M
- IT and Managed Services provider ConvergeOne (Nasdaq:CVON) announced today its planned acquisition of Venture Technologies, a solution provider headquartered in Ridgeland, MS, also known as VT Consolidated.
- The transaction follows ConvergeOne’s acquisition by CVC Capital Partners announced one month ago, and is expected to be completed within 30 days.
- It does not include WhiteLight Group, the business application consulting entity acquired by Venture Technologies in 2016.
- Cloud = Compelling: ConvergeOne CEO John McKenna cited Venture Technologies’ portfolio of cloud and data center services as key drivers for the transaction, helping ConvergeOne establish itself as a “single-source” cloud provider. It’s a common motivation for such transactions–IT services providers are always looking to differentiate themselves in today’s cloud-focused economy.
- Building Up and Building Out: Venture Technologies has established itself across the South and the Mid-West, nicely slotting in with minimal overlap with ConvergeOne’s national footprint. It expands both ConvergeOne’s solution set and its geographic reach, adding value in multiple ways.
Creating Value Through Smart Acquisitions: ConvergeOne considers inorganic growth key to its overall strategy, and with its private equity partners it has been able to make multiple strategic acquisitions to grow the company into the behemoth it is today. This year alone has seen the company acquire collaboration and technology services provider Advantel Networks in October as well as Arrow’s Systems Integration services unit in March.
The Early Bird Gets His Worm: Venture Technologies CEO Gerard Gibert and his co-founder CFO Norman Katool are visionaries, having founded the company in 1986 as one of the earliest providers of data hosting services with their own datacenter. It was also one of the early providers of the hosted Cisco telephony platform–and in recent years made a number of significant acquisitions to boost its own inorganic growth.
For more information about this transaction, click here to read the press release.
*Financial information from FactSet.
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