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.
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