Channel Dealmaker Converge Technology Solutions Buys 3 Partners
Converge Technology Solutions continues to invest millions in acquiring channel partners in North America and Europe to reach its goal of increasing sales by $1 billion in 2022.
Converge Technology Solutions is on pace to fulfill its goal of acquiring upwards of a dozen channel partners throughout North America and in Europe that focus on the midmarket.
The Canadian-based channel M&A superstar will likely grow sales by $1 billion this year via acquisitions as Converge Technology Solutions (CTS) unveils today that it has entered into an agreement to acquire three Germany-based IT organizations that specialize in the education market.
CTS is set to acquire companies GfdB, IfmB, and DEQSTER, all with a focus on enabling schools and universities to implement their digital future, in a move to significantly expand CTS’ ability to be a leading education channel player in the German market, according to CEO Shaun Maine (pictured above).
[Related: Converge CEO On Acquisition Strategy: ‘The Team Will Always Beat An Individual’]
“The additions of GfdB, IfmB, and DEQSTER to Converge’s portfolio of companies in Germany will be a major leap forward in our ability to strongly serve the German market,” said Maine in a statement.
The three German companies will put CTS’ acquisition total at 32 companies since 2017.
Converge Technology Solutions’ $1 Billion Sales Growth Strategy
CTS’ growth strategy is to increase total revenue by $1 billion per year via acquisitions.
CTS’ acquisition strategy is two-fold: either buy a channel partner that has a longstanding and strong midmarket customer relationships, or acquire a channel partner that owns the IT expertise and skills capabilities that are hard to come by.
After acquiring a company, CTS then uses its massive amount of technical, sales and services resources to drive growth within the newly acquired company.
“I realized it was a better strategy to buy these smaller [channel partners] in all the NFL cities, because they’re competing on technology and service levels, but they’ve been swimming against the current, because the vendors are backing somebody else,” said Maine in an interview with CRN last month. “If you can have that local service level, but then have this big company like Converge with all these capabilities and the backing of the vendors—then they’re swimming with the current. This is where the strategy has been so successful, especially during the COVID pandemic. That local service level really showed itself.”
Maine told CRN that his company has already nearly achieved its $1 billion revenue growth goal in 2022 by increasing sales by $840 million as of last month. The three German-based companies CTS is set to acquire will likely put Converge near the $1 billion benchmark.
CTS To Form Germany Alliance
Breaking down the three companies Converge Technology Solutions is looking to acquire in Germany, GfdB and IfmB are full-service IT suppliers for education—offering everything from hardware and software to advanced training and comprehensive technical/consulting services.
The company DEQSTER specializes in the development and production of equipment for digital learning and working, with a broad portfolio comprising of tablet cases, protective sleeves and digital pencils, to name a few.
Additionally, CTS plans to form an alliance between these three Germany-based companies with other recently acquired CTS companies Rednet and Visucom.
CTS plans to form a new alliance between GfdB, IfmB, DEQSTER, REDNET, and Visucom that will allow customers to enhance and strengthen their solutions, services, and offering, as well as develop new strategies to better serve the education sector in Germany. This company said the enhanced portfolio will include a tailored 360 approach that furthers education to professional and managed services, logistics and system configuration, technical services, and parental financing.