28 February 2005
Logicalis announces intent to acquire IBM ZSeries business partner Eisco Technology
Planned acquisition will allow Logicalis to offer full complement of IBM lines as the company cements its position as a leading integrator of end-to-end enterprise solutions
Las Vegas, NV – February 28, 2005 – Logicalis, an international IT integration company and one of HP's largest Unix and storage solution providers, announced today from the floor of IBM's PartnerWorld that it has agreed to final terms to acquire Eisco Technology, Inc., a $20 million, privately-held IBM solution provider that focuses on high-end IBM zSeries mainframe solutions.
"Over the last couple of years Logicalis has been striving to increase its presence in the marketplace through both organic growth as well as through acquisitions," said Mike Cox, CEO, Logicalis, Inc. "As a $350 million solution provider of products from multiple vendors including HP, IBM, Cisco and EMC, in the U.S., we do our utmost to provide comprehensive solutions to our customers' IT requirements through product and service offerings. The planned acquisition of Eisco fills out our IBM solutions portfolio and allows us to meet our customers' entire IBM requirements. At the same time, Logicalis will remain committed to representing the full complement of HP enterprise server and software products."
"This acquisition will allow us to expand our business beyond our current markets," said David Rousso, President, Eisco. "Eisco's capabilities in zSeries solutions will bring Logicalis immediate value. This is an amazing opportunity for all involved."
The Eisco capabilities and resources will be rolled into Logicalis' IBM-dedicated Solution Technology Group (STG). The announcement comes seven months after the company's 2004 acquisition of top ranked IBM Business Partner, Solution Technology, Inc. (STI). "The acquisition process has gone very smoothly and it has been a very positive experience," said Jeff Teeter, General Manager and Executive VP, Logicalis, Inc. STG division and previously an STI executive. "STI's complementary match with Logicalis ' existing offerings and our cohesive business models has facilitated the successful merger of the companies, and I anticipate we will see much of the same with Eisco acquisition."
"Eisco brings the one piece of the IBM product line that we [STI] couldn't fulfill," said Kirk Zaranti, Senior VP of Sales, Logicalis STG division and previously an STI executive. "This acquisition plan has really been driven by customer demand. Our customers will immediately be able to take advantage of our new zSeries Medallion status in order to obtain the mainframe solutions they require."
In addition to its relationship with IBM, Logicalis boasts a long history with HP. The company has been a top HP solution provider since 1992 and is currently a leading HP Platinum Business Partner. The company started supporting IBM solutions in 2000 in order to better meet customer requirements for multiple solutions. Since then the company has been filling out its IBM solutions portfolio.
"Although the manufacturers don't want to believe it, you would be hard pressed to find an enterprise today that has a single vendor solution across its IT environment," said Brian Nogar, COO, Logicalis. "Logicalis has chosen to focus on our customers' needs first. We maintain dedicated sales and technical consulting organizations to make sure that our people are the best in the industry for the product line they support. The benefit we bring to the customer is that we understand how to work with heterogeneous environments, and that is the reality of today's IT enterprise."
Logicalis expects to continue its acquisition activities by purchasing solution provider organizations with complementary vendor lines, resources and capabilities that will further strengthen the company's product and service offerings and its geographical presence in the United States. In addition, the company will continue to provide a core set of services including managed services, data management, security, enterprise management, IP communications, applications services and contract consulting services to support its client's IT support requirements.
About Logicalis
Logicalis is an international provider of high-performance IT integration solutions. Logicalis employs over 800 people worldwide, including highly-trained service specialists who specify, design, deploy and manage IT infrastructure to meet the needs of over 5,000 corporate and public sector customers. Logicalis maintains strong partnerships with technology leaders such as HP, IBM, Cisco and EMC.
The Logicalis Group is a division of Datatec Limited, a $2.5 billion business listed on the Johannesburg Stock Exchange. With its international headquarters in the UK, Logicalis' global revenue is approaching $500 million from operations in the US, UK, Germany and South America. In North America, Logicalis accounts for nearly $350 million in revenue and approximately 350 employees. For more information, visit www.us.logicalis.com.
For more information, contact:
Lisa Dreher
Logicalis
lisa.dreher@us.logicalis.com; 425-201-8111