PIVOT TECHNOLOGY SOLUTIONS ACQUIRES TERAMACH, EXPANDS GLOBAL FOOTPRINT WITH CANADIAN ACQUISITION
TORONTO, Oct. 3, 2016 /CNW/ - Pivot Technology Solutions (TSX-V: PTG) today announced it has acquired all shares of TeraMach Technologies Inc., a leading Canadian provider of information technology products and services.
Terms of the acquisition were not disclosed but TeraMach is a profitable and growing private company with annual revenues of approximately $100 million and gross margins that are similar to Pivot's. This was an all-cash transaction financed by way of Pivot's existing borrowing facilities.
Headquartered in Ottawa and founded in 1996, TeraMach has achieved significant growth by addressing the specialized IT needs of a wide spectrum of enterprise customers, including various levels of government in Canada. TeraMach will operate under the brand TeraMach, A Pivot Company.
Together, Pivot and TeraMach offer an extensive portfolio of solutions from strategic technology partners that enables data center transformation, collaboration, cloud, end-user compute, security and networking. These solutions are backed by a comprehensive delivery model that includes advisory-consulting, implementation, integration and managed services. TeraMach plans to introduce Pivot's services capabilities to its existing customers, giving them access to Pivot's full portfolio of offerings.
"Canada is a strategic market for Pivot and TeraMach is the perfect company for us as we continue to expand in North America," said Kevin Shank, Pivot President and Chief Executive Officer. "In addition to proven leadership, TeraMach has an excellent reputation, strong brand name and a knowledgeable team of dedicated IT professionals who serve a great roster of valuable customers. We believe we can add value to TeraMach's accounts with our services portfolio and grow together in Canada by adding more capabilities around their core business."
As part of Pivot, TeraMach gains access to valued new technology partners, which only serves to strengthen their leadership position and adds volume to existing vendor relationships.
"Joining Pivot is strategic to us as it will enable TeraMach to offer more services as a larger, more resourceful and certainly more competitive enterprise," said Hunter Li, TeraMach's co-founder and CEO. "We see this as a catalyst to grow to the next level as a differentiated IT provider and we're particularly excited about the services portfolio approach that Pivot is developing. We believe it is well aligned with current trends in the marketplace and it will add considerable value to our relationships with current customers and partners."
In welcoming TeraMach's highly skilled people, loyal customers and innovative vendor partners to Pivot, Mr. Shank also underscored the "tremendous value that we will derive from the fact that TeraMach's current leadership team will remain with the business to direct our Canadian growth and customer service strategies." Mr. Li will remain President of TeraMach.
To realize the full value of the combined business, "the two organizations will share best practices and coordinate sales and service efforts," said Brian Kyle, Chief Financial Officer of Pivot. "There is no duplication between our businesses, they are entirely complementary and synergistic, but we firmly believe we can create additional value by coordinating efforts and leveraging our existing asset to address TeraMach's customer needs."
About TeraMach
Since 1996, TeraMach has worked with organizations across Canada to implement proven, scalable technology solutions. Our focused approach and agility to address new challenges allow us to deliver flexible solutions that customers can trust. For more information, visit www.teramach.com.
About Pivot Technology Solutions
Together with its portfolio companies and partners, Pivot delivers solutions that enable organizations to design, build, implement and maintain computing and communication infrastructure that addresses their unique business needs. Pivot's approach supports improvement of business performance, helps organizations reduce capital and operating expenses and accelerates the delivery of new products and services to end-customers. With over 2,000 customers, many of whom are Fortune 1000 companies, Pivot extends its value-added solutions to help organizations of all sizes improve operating efficiency, reduce complexity and enhance service delivery through virtualization and cloud computing. Pivot enables businesses to extend their enterprise through mobility solutions to better connect business partners and customers. Pivot has offices throughout North America and can be found online at www.pivotts.com.
