Logicalis Acquires $125M German Solution Provider

Logicalis has agreed to acquire a German IT service and solution provider to bolster its database and storage offerings in the Central European nation.

New York-based Logicalis, No. 26 on the CRN SP 500, has annual revenue of $1.6 billion, and Inforsacom had sales of $125.3 million in the 2013 fiscal year. Logicalis said the acquisition will expand the solution provider's presence in the German IT market, and provide it with sufficient business to scale operations in the country.

Logicalis has a smaller existing German operation apart from Inforsacom.

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The deal is expected to close in January 2015, and is subject to approval by the German Competition Authorities and the South African Reserve Bank.

Inforsacom has operations in Germany's major economic centers, and works with major vendors such as Oracle, EMC, IBM, Hewlett-Packard, Symantec and HDS. It specializes in database, storage, and back-up solutions and services.

Inforsacom was founded in 1997 and has more than 160 employees, according to the company's website. The company had a management-led buyout in 2010.

Logicalis President and Chief Operating Officer Mark Rogers said the deal should broaden Logicalis' IT solutions portfolio and position the company as a significant player in the German IT market.

"Logicalis' acquisition of Inforsacom provides the perfect opportunity to complement and build on our offering in Europe," Rogers said in a statement. "Storage and database are two segments that are showing rapid growth in Germany."

Logicalis has been extremely active in the merger and acquisition market over the years, completing 13 acquisitions between 2000 and 2012. But CEO Vince DeLuca told CRN in July 2012 that the company was taking a pause on major M&A activity.

"We want to get momentum and traction on the assets we have," DeLuca said at the time. "But we're always keeping an eye out there."

Inforsacom is headquartered in the Frankfurt suburbs, and has offices in Dusseldorf, Stuttgart and Munich.

Logicalis has operations in Europe, North America, Latin America and Asia-Pacific. The company employs 3,800, and has nearly 6,000 corporate and public sector customers.

PUBLISHED DEC. 2, 2014