Datatec International subsidiary Logicalis US has acquired Solution Technology Incorporated (STI) for a maximum $15.7 million.
The group says $2.7 million of the purchase price relates to a profit warranty for the year to end-December 2004.
STI, an IBM infrastructure solutions partner, is to be merged into Logicalis US`s existing operations to become the Logicalis US IBM division, the group says.
The acquisition will result in Logicalis US having more than 350 employees and combined annualised revenue of almost $300 million.
"Logicalis US has for the past 18 months been investing in growing its IBM business relationship to complement its existing technology partners, Hewlett-Packard and Cisco," Datatec says.
"IBM operates a geographically structured and authorised channel strategy which raises the barrier for new entrants such as Logicalis. The business of STI will enable Logicalis US to exponentially grow its IBM product and services business from some $10 million per annum currently to approaching $100 million.
"This scale and size would not have been possible to achieve through organic growth in the short-term."
STI delivers solutions to more than 500 customers, mainly in the Midwestern US.
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