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(WEB HOST INDUSTRY REVIEW) -- Helping it complete its nationwide footprint and expand its services portfolio, data center infrastructure and services provider Datalink (www.datalink.com) has bought the reseller business of managed services and data center solutions provider Incentra (www.incentra.com) for $8.8 million in cash.
According to its Thursday announcement, Datalink acquired Incentra technology, consulting and first call support services areas of business, representing as much as $100 million in annualized revenue, according to estimates, and approximately 2,000 enterprise customer relationships throughout the US.
"With the addition of Incentra, Datalink is positioned to enter 2010 with an anticipated annual revenue run rate of more than $275 million driven by over 300 employees," Datalink president and chief executive officer Paul Lidsky said in a statement. "Our expanded footprint and portfolio enables us to provide customers with the most complete data center solutions while at the same time fueling accelerated revenue growth."
Purchased from New York City-based Laurus Funds, the Incentra reseller business provides technology, consulting and outsourcing services to mid-tier and large enterprise companies in the financial services, life sciences, insurance, healthcare, media, manufacturing and education sectors. The Incentra reseller business designs, procures, implements and supports data center solutions comprised of technologies spanning storage, network, security and servers from leading manufacturers.
Incentra will keep its managed services portfolio and operations, which were excluded from the deal.
Incentra CEO Shawn O'Grady, who is joining Datalink as executive vice president of strategy and operations, said Incentra's robust services offering and expanded portfolio with Datalink's unparalleled strength in storage and data center virtualization is an ideal match. "Combining advanced certifications in network and server technologies around the leading manufacturers while strengthening our storage partnerships establishes Datalink as the premier IT solutions provider in the US," he said in a statement.
Datalink anticipates the transaction will become accretive to net income within the first 12 months. The company plans to complete integration of the Incentra business within 90 days. It expects cost synergies, however, to take effect this month, and most impacting the bottom line by January 2010.
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