DAILYHOSTNEWS, October 3, 2011—Datalink Corp., a data center infrastructure and services provider indicated on Monday that it had taken control of basically the entire operations of Midwave Corp. Midwave is an IT services and solutions firm that deals with optimization of data centers and IT infrastructure of enterprise companies. Both Datalink and Midwave have an outstanding track record of success in helping organizations achieve their business value of IT.
The purchase of Midwave amounted to $17.6 million. This value is comprised of a cash payment of roughly $16.1 million and $1.5 million in Datalink common stock. Meanwhile, Datalink assumes approximately $11.0 million of current liabilities, $11.5 million in acquisition of current assets and a further $500,000 in property and equipment
The major focus of Datalink is to transform datacenters so that they can be efficient, manageable and responsive to the ever dynamic business needs. Datalink comes in handy from the onset, from consulting and design to implementation, management and support. Other solutions offered by Datalink include: virtualization and consolidation, data storage and protection, advanced network and business continuity
With this merger, Datalink hopes to close the year 2011 with an annualized run rate of more than $400 million and increase the number of its employees to 400.
Midwave chairman and CEO John Leslie who is joining Datalink as executive Vice President of strategy and business development indicated in his remarks that Midwave and Datalink formed a perfect combination with unparalleled professional and sales terms, datacenter best practices and a passion for delivering, long-term value-based services for their customers.
“Our expanded footprint in the Twin Cities makes us the dominant data center services and infrastructure provider in the region,” said Paul Lidsky, president and CEO, Datalink. “This acquisition doubles our Cisco technology and services revenues, expands our managed services portfolio with the addition of a data center infrastructure monitoring service, adds an established security practice including product, services and consulting and doubles the size of our consulting services team. From our consultative approach and elite professional services teams to our robust portfolio and our customer-centric focus, we believe combining Datalink and Midwave is a tremendous opportunity for our customers, partners, employees, and stockholders.”
Datalink expects to fully integrate the Midwave business within 90 days.
Datalink anticipates that the transaction will become accretive to the net income within one quarter. The company also expects cost synergies to take effect in the first quarter of 2012.