Cloud Solution Provider ConvergeOne Acquires Integration Partners

‘Speaking for me and my partner, we’re super proud of the company we built and the people that work at Integration Partners. And we felt the acquisition by ConvergeOne will be a good opportunity for growth for both ConvergeOne and the employees at Integration Partners,‘ says David Nahabedian, Integration Partners principal and co-founder.

ConvergeOne, a services-led cloud solution provider, Thursday unveiled the acquisition of Integration Partners Corp., a solution provider with a collaboration and digital infrastructure focus.

Bloomington, Minn.-based ConvergeOne, listed at no. 34 on the CRN Solution Provider 500, claims to have over 13,000 customers, including 55 percent of Fortune 100 companies and 41 percent of Fortune 500 companies across education, healthcare, finance, manufacturing, and energy verticals.

Terms of the deal were not disclosed.

According to Moody’s, ConvergeOne is expected to generate about $1.7 billion in sales in 2022.

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Lexington, Mass.-based Integration Partners Corp., listed at no. 114 on the CRN Solution Provider 500, is a nationwide IT services engineering firm specializing in a solutions and services portfolio bringing cloud, security, core infrastructure, collaboration, and managed services to enterprise clients.

The chance to become part of ConvergeOne was too great an opportunity to pass up on, said David Nahabedian, principal and co-founder of Integration Partners.

“Speaking for me and my partner, we’re super proud of the company we built and the people that work at Integration Partners,” Nahabedian told CRN. “And we felt the acquisition by ConvergeOne will be a good opportunity for growth for both ConvergeOne and the employees at Integration Partners.”

Executives at ConvergeOne were not available to talk with CRN more about the acquisition by press time. However, John McKenna, ConvergeOne chairman and CEO said the two companies share a common passion for solving business challenges.

“The strength of their customer relationships and the breadth of their portfolio are a perfect addition to ConvergeOne,” McKenna said in a statement. “Combined, we will provide customers with an expanded set of solutions powered by virtually all Gartner Magic Quadrant leaders for cloud, collaboration, cyber security and digital infrastructure services. I am excited to welcome Integration Partners to the ConvergeOne family.”

Marty Wolf, managing partner at martinwolf M&A Advisors, advised Integrated Partners on the acquisition, and called the solution provider one of the pre-eminent systems integrators, and one of the few who had operated independently of institutional investment.

Wolf told CRN his company was hired to look at options, and eventually connected with several serious potential buyers before the decision was made to work with ConvergeOne.

“We saw a lot of interest in Integrated Partners, which eventually picked ConvergeOne because of the culture,” he said. “ConvergeOne really did a lot of work in the deal. They understood the assets. They really got it. A lot of companies are shipping products. But Integrated Partners is a really well-run, high-value shop, and great guys to work with.”

ConvergeOne has grown through a string of acquisitions since the company was acquired by private equity firm CVC Fund VII in a $1.8-billion deal.

That string of acquisitions, including four in 2021, seems likely to continue. Financial services company Moody’s said in December that ConvergeOne proposed adding $150 million to its existing $936 million senior secured first lien term loan in order to fund two pending acquisitions, although that funding could be linked to the acquisitions of Integration Partners and Prime TSR, which was unveiled a week after the Moody’s report.

ConvergeOne in December unveiled the acquisition of Prime TSR, an Chicago-based solution provider specializing in the design and implementation of cloud-focused software and data platforms to enable customer digital transformation.

November saw ConvergeOne acquire WrightCore, a Franklin, Tenn.-based provider of cloud, managed services, and professional services across healthcare, education, manufacturing, utilities and financial services industries.

ConvergeOne in June acquired NuAge Experts, a Boulder, Colo.-based premier Salesforce services provider.

The company in March also acquired AAA Network Solutions, a Buena Park, Calif.-based provider of education-focused solutions, including via the E-rate funding, to K-12 schools in California.