ConvergeOne Looks South For A $92M Acquisition

ConvergeOne has agreed to buy Mississippi-based VT Consolidated for $92 million to increase its presence in the southern and western US as a provider of cloud services and support, the company said.

VT Consolidated is an integrator headquartered in Ridgeland, Miss. also known as Venture Technologies. The company makes IT infrastructure solutions, collaboration solutions, and provides cloud services to businesses nationwide. Completion of the transaction is expected to occur within 30 days.

“This acquisition will complement ConvergeOne’s already comprehensive portfolio and expand the collaboration solutions we offer customers today,” John A. McKenna Jr., chairman and CEO, ConvergeOne said in a statement. “Venture Technologies has a strong portfolio of cloud and data center services, as well as business expertise in the education, healthcare, and financial services verticals. This acquisition will enable ConvergeOne to increase our presence in the southern and western United States and advance our leadership position as a single-source provider of collaboration cloud offers, services, and support.”

ConvergeOne did not immediately respond to a request for comment.

ConvergeOne itself is in the midst of being acquired for $1.8 billion by CVC Fund VII, a deal that was announced in November.

Subject to customary closing conditions and regulatory approvals, ConvergeOne expects the transaction to close in the fourth quarter of 2018 or the first quarter of 2019. ConvergeOne will maintain its corporate headquarters in Eagan, Minn., and continue to be led by its current executive team.

ConvergeOne is No. 34 on the 2018 CRN Solution Provider 500. The company hosted an earnings call last week in which it reported $404 million in quarterly revenue, an increase of 64.4 percent from a year ago, it said.

The company went public and started trading on the Nasdaq on Feb. 23, and in its most recent earnings call raised guidance for the year, telling investors that annual revenue would land between $1.55 billion and $1.65 billion.

WhiteLight Group, a business application consulting entity acquired by Venture Technologies in 2016, is not included in this transaction.