Insight Enterprises Buys Cardinal Solutions For $79M

Insight Enterprises has acquired Cardinal Solutions for $79 million in a move that the company said establishes the combined enterprise as one of ’the top partners in the Microsoft ecosystem.’

Cardinal Solutions, a Cincinnati, Ohio based provider was a 2017 Worldwide Microsoft Partner of the Year, OpenSource on Azure, according to the company’s website.

’With expertise in mobile application development, Internet of Things and cloud-enabled business intelligence, Cardinal will be a great complement to our digital innovation solution area where we’ve been building similar capabilities with the acquisitions of BlueMetal in the U.S. in 2015 and Ignia in Australia in 2016,’ Insight CEO Ken Lamneck said during an earnings call on Wednesday.

Cardinal has 450 technical sales and service employees that do business across the Midwest and southeastern U.S. It generated about $75 million in net sales over the last 12 months, Insight said.

Tempe, Ariz.-based Insight, No. 12 on the 2018 CRN Solution Provider 500, said it will finance the takeover with debt.

’We have not yet completed our valuation work on the assets on the intangibles acquired, but based on our estimates, we expect this acquisition to be neutral to our earnings from operations for the balance of this year, including estimated intangible amortization expense,’ said Insight CFO Glynis Bryan.

In a statement, Insight said that Cardinal will complement the capabilities Insight has been building within the digital innovation solution area, following the acquisitions of BlueMetal in 2015 and Ignia in 2016.

In addition to the partner of the year award in 2017, Cardinal was designated Microsoft's 2018 MSUS Partner for Apps and Infrastructure.

During the earnings call, Insight said quarter to quarter sales rose 9 percent, up to $1.83 billion from $1.68 billion. Meanwhile profit for the second quarter ending June 30 was up 28 percent to $51.4 million.