Channel Marker

Jun 13 2011   7:08PM GMT

IT channel merger activity continues apace

Heather Clancy Heather Clancy Profile: Heather Clancy

Since I wrote my article last month about the spike in channel mergers and acquisitions, two more big deals have come to my attention — one aimed at expanding the service footprint of the acquiring company and the other marking a geographic extension of the acquiring company’s sales territory.

The first one totally took me by surprise, given that I have worked from time to time on a consulting basis with the company’s marketing team. It seems that Agilysys has agreed to sell its Technology Solutions Group (TSG) for $64 million to a Canadian enterprise solution provider, OnX Enterprise Solutions of Toronto. The transaction has to be approved by Agilysys shareholders; it will probably close during the company’s second fiscal quarter, which is set to end on Sept. 30, 2011. The deal also signals a new phase of management for the larger Agilysys organization, with the resignation of its president and CEO, Martin Ellis.

This raised my eyebrows because as you probably realize, Agilysys was (and still is, to my knowledge) a big Sun Microsystems partner. In its current form, the company has an extensive portfolio in enterprise server, storage and data center solutions. Here’s the requisite statement from Sheldon Pollack, the co-founder and director of OnX Enterprise Solutions:

“The combination of OnX and TSG will create North America’s leading IT solution provider focused solely on providing mission-critical, multi-vendor data center solutions to medium and large enterprises. The combined operations will have annual revenues in excess of $700 million and will be ideally positioned to serve customers with requirements on both sides of the border. We look forward to welcoming TSG’s employees, partners and customers to the OnX family and continuing TSG’s 25-year tradition of technical excellence and market-leading customer service.”

The second deal, ePlus Technology’s acquisition of NCC Networks, will expand ePlus’ services related to security. NCC, which is based in Elgin, Ill., operates a security operations center plus it offers vulnerability, Web application, wireless and cloud security assessments. Something that is definitely in demand with all these hack attacks going around.

The acquisition also gives ePlus a new sales location. The companies aren’t talking about the financial particulars, but the founder of NCC, Earl DeFrates, along with the NCC director of professional services, Sam Curcio, have both joined ePlus.

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