Venture Technologies Merges With Information Systems Consulting, Acquires Strategic Allied Technologies

As VARs are looking to make an even larger impact in the channel, many are choosing to unite with and acquire other solution provider businesses.

Venture Technologies has merged its IT and cloud solution provider business last Tuesday with Denver-based Information Systems Consulting (ICS) to focusing on building out its scalability.

Today, critical mass and scale are essential to long-term sustainability and survival in the channel, said Gerard Gibert, CEO of the Jackson, Miss.-based Venture Technologies.

"Going back to 2007-8, the industry was very fragmented [and] started to really be in need of consolidation," said Gibert.
"As time goes on, our [business] gets more diverse, and we dive deeper into enterprises as they look for extensive resources and critical mass, which generally allows us to improve the level of service we can deliver to our customers."

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Solution providers will continue to join up with other solution providers, to form larger, palpable and practical organizations, said Gibert.

"The dynamics of the demands from the customer side and partner side are just overwhelming and requires you to really step it up," said Gibert. "Today a lot of folks are looking to join up so they can have access, maintain and manage [their businesses] successfully. We must continue to embrace change, adopt and invest or you're going to get left behind."

Together, Venture Technologies and ISC will bring a total of four data centers and combined revenue of $150 million. ISC also will bring its similar technologies including network infrastructure, cloud and virtualization, said Gibert.

"We built a good platform in Venture Technologies but the notion of expanding organically is risky and time-consuming [so] we explored and investigated across the country to grow the company," said Gibert. " Rather than trying to build out those capabilities, when you combine it becomes practical, doable and improves our line card and portfolio."

The transaction will be completed in May 2014 and in the long run, Venture Technologies anticipates operating with ISC under its single brand, said Gibert.

"They will be a phased-in approach since ISC has built a great brand in the market and we don't want to interfere with the brand and reputation," said Gibert. "Our long-term plan will definitely operate under the single brand of Venture Technologies."

NEXT: Private Equity Investment Firm Provides Financing And Advisory Role To Venture Technologies

Currently FlatWorld Capital, a New York-based private equity investment firm is providing financial and management support, said Gibert. Details of the financing were undisclosed.

"For this first wave, [they] are really more of an adviser while providing capital," said Gibert. "We are working with a number of financial resources that are being guided by FlatWorld Capital. Jeff Valenty and his team have been tremendous in working with our team."

In addition, together with ISC, Venture Technologies has acquired Strategic Allied Technologies (SAT), an IT solution provider based in Hoover, Ala.

"SAT makes a lot of sense to increase our presence in Alabama and our critical mass," said Gibert. "Having more resources in Alabama improves our position in the market, and helps facilitate and execute our long-term strategy for the future."

According to Gibert, Venture Technologies is focused on public sector, health care and education. ISC will bring its expertise in the public safety vertical, and SAT will bring its strong presence in the state, local and federal market, said Gibert.

For 2014, the road map entails leveraging new solution provider partners to continue growing Venture Technologies, he said.

"This is the beginning, this is not the end. I'm open to visiting and discussing opportunity with anybody in our industry, said Gibert. "This is just the initial series of transactions that will develop the platform to embark on a series of other transactions to scale the company to a bigger level."

PUBLISHED APRIL 8, 2014