"If you really look closely, most overnight successes took a long time."
ConvergeOne Acquires AOS
- Not Disclosed
- On December 18, IT services provider ConvergeOne announced that it had acquired IT consulting group Alexander Open Systems (AOS).
- The transaction adds to ConvergeOne’s Microsoft and Cisco capabilities – in the press release announcing the deal, ConvergeOne Chairman and CEO John McKenna credited the acquisition with allowing the company to now offer Sharepoint and Service Request Management solutions.
- Going forward, the company has been renamed AOS, A ConvergeOne Company, and will be led by ConvergeOne’s president of field organization, John Lyons.
- Financial details of the transaction were not disclosed.
Finding the Right Fit
- Plug and Play: This is the latest significant acquisition since ConvergeOne was acquired by Clearlake Capital in 2014. In August the company became a billion-dollar solution provider with the $300M acquisition of SPS. Both acquisitions boosted ConvergeOne’s Cisco capabilities — ConvergeOne has more traditionally focused on Avaya products and services.
- Reaping Rewards: AOS recently rededicated itself to succeeding in its core businesses: selling and supporting services in the Microsoft, Cisco, EMC and related ecosystems. One component of this was the 2016 sale of its cloud business to Los Angeles-based Unitas Global, which at the time was said to create a new sales channel and help increase core profitability.
- A Surprise, but Not Surprising: At the time of the sale to Unitas, AOS Chairman Gary Alexander said in an interview that while the overall company was not for sale, “If somebody wants to come with a truckload full of money and buy the company, come on down.” Today, while financial details were undisclosed, he cited ConvergeOne as a good fit for both the company and its employees.
- Next Stop — Nasdaq: ConvergeOne announced earlier this month that it had entered a definitive agreement with blank check company Forum Merger Corporation (Nasdaq:FMCI). Once the transaction closes, which is anticipated to occur in the first quarter of 2018, ConvergeOne will be listed on the Nasdaq with an anticipated initial enterprise value of approximately $1.2 billion.
For more information about this transaction, click here to read the press release.
martinwolf was not the advisor in this transaction.