Computer Design & Integration has acquired Plan B Technologies as solution providers backed by private equity companies continue to drive channel consolidation in 2020.
With the backing of private equity firm One Equity Partners, Computer Design & Integration (CDI) says it is starting an “aggressive M&A growth strategy” beginning with the purchase of Plan B Technologies (PBT) in a move to significantly grow its capabilities for customers.
“Welcoming PBT to the CDI family demonstrates that we have taken another major step in differentiating our capabilities and services,” said Rich Falcone, president of CDI in a statement. “PBT’s extensive virtualization experience perfectly aligns with our digital workspace offerings and the new work-from-anywhere reality. This acquisition provides the opportunity to add scale, increase our current skillset and develop the solutions our customers need to accelerate innovation.”
New York City-based CDI and Annapolis, Md.-based Plan B Technologies are both ranked on CRN’s 2020 Solution Provider 500 list, ranking No. 78 and No. 395, respectively.
Financial terms of the acquisition were not disclosed.
Private equity companies are investing in or flat out taking over large-sized MSPs as a wave of private investment heads into the channel in 2020. For example, Dataprise was taken over by Dallas-based investment company Trinity Hunt Partners, while West Monroe Partners’ managed services portion of its business was taken over by M/C Partners, a Boston-based private equity firm.
Last week, Tech Data closed a deal with private equity firm powerhouse Apollo Global Management to take the company private with a $750 million investment.
PBT provides storage area networking (SAN), backup, recovery and archiving, security and network infrastructure, virtualization and Microsoft solutions for infrastructure, applications and desktops. CDI provides a slew of data center, cloud and managed services including public, private and hybrid cloud management, remote workforce solutions, as-a-service offerings, service management, as well as its proprietary Hybird Cloud Automation Framework (HCAF) and Zero Touch Operations.
The purchase allows both CDI and PBT to grow its service offerings, strengthen ongoing relationships with key technology partners as well as expand sales reach across the eastern U.S., according to the companies.
The two solution providers already have a “successful history of working together to deliver complex IT solutions,” said Donnie W. Downs, president and CEO of PBT, in a statement. “We are synergistic in our approach to all areas of business and complimentary in the technologies that we deliver.”