Datalink acquires San Francisco-based Bear Data for $18.5 million
Datalink Corporation announced in an official press release Monday that it would acquire Bear Data Solutions, Inc. The release stated that the technology acquisition "will quadruple Datalink's West Coast revenue base to more than $200 million — up from its projected $145 million this quarter — and expand its Cisco expertise into strategically important new areas," in addition to attracting "1,000 new midmarket and enterprise customers."
A self-described "complete data solutions and services provider for Fortune 500 and mid-tier enterprises," Datalink's business is comprised largely of helping companies implement technologies in all stages of the IT life cycle that boost their efficiency and profitability.
Datalink expects the acquisition of Bear Data to broaden its West Coast clientele base with good reason — Bear Data is based out of San Francisco, and the majority of its customers have offices there, as well as in Irvine, San Jose and San Diego.
According to the Datalink press release, the acquisition deal amounts to $18.5 million ($16.8 in cash and $1.7 million in common stock), and the corporation estimates $1-2 million in savings as a result of the companies sharing resources.
Don James, the president and CEO of Bear Data, is optimistic about the acquisition, stating that both customers and employees with benefit substantially from the deal. Customers, he said, would gain access to a wider breadth of services and skills and have access to a support center open 24 hours a day.
This deal highlights the many potential benefits of acquiring a tech company that offers similar services but has a foothold in a different geographic area. If you are looking to expand your company's offerings and presence in the tech industry, contact an M&A advisor today.