Sources: ConvergeOne Acquires Sigmanet As Solution Provider Consolidation Continues

ConvergeOne, an Eagan, Minn.-based solution provider focused on data center and collaboration technology, has struck a deal to acquire Sigmanet, a 25-year-old firm that is one of California's largest solution providers, sources familiar with the deal told CRN on Thursday.

ConvergeOne is paying between $40 million and $45 million to acquire Sigmanet, and the companies are set to formally announce the deal Friday, according to the sources, who requested anonymity because the information is confidential.

Spokeswomen from ConvergeOne and Sigmanet declined comment.

[Related: Solution Provider ConvergeOne Acquired By Private Equity Firm Clearlake Capital]

Sigmanet, Ontario, Calif., is a CRN 2015 Triple Crown Winner and was ranked No. 131 on CRN's 2015 Solution Provider 500 list. Its broad focus include expertise in cloud computing, data analytics, mobility, security, data center IT, unified collaboration and end-user computing, among other services.

Sigmanet, incorporated in 1990, has partnerships with Cisco, EMC, Intel, VMware, Dell, HP, Apple and IBM, among others.

ConvergeOne, founded in 2005, was acquired in May 2014 by private equity firm Clearlake Capital Group. At the time, ConvergeOne said it had more than 4,000 customers, including many Fortune 500 firms.

ConvergeOne has been on a bit of an acquisition spree since becoming part of Clearlake Capital Group. In May, it acquired Sunturn, an Avaya Platinum Partner, and Mountain States Networking, a Cisco Gold partner.

ConvergeOne also acquired solution provider Spanlink last October, adding managed services and collaboration to its technology lineup.

In October of this year, ConvergeOne combined its various operating units into a single company, including NACR, a top Avaya channel partner; ConvergeOne Technology, a managed service provider; and ConvergeOne Advanced Services (formerly SimpliCTI), a software-focused solution provider.

ConvergeOne has around 1,200 employees and 1,400 industry certifications. In addition to being one of the world's largest Avaya partners, ConvergeOne also partners with Cisco Systems, IBM and Microsoft.

PUBLISHED DEC. 10, 2015