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August 18, 2017
martinwolf  Transaction Analysis
Sirius in Talks to Acquire Forsythe

Financial Information*
  • Financial Terms Not Disclosed
Transaction Facts
  • According to CRN, Sirius Computer Solutions is in negotiations to acquire $1 billion solution provider Forsythe Technology, following news that the company was looking for a buyer in June. 
A New Direction
  • Significant Scale: Continuing strong M&A activity in the channel, the potential acquisition would create a 3,000 employee, $3.2 billion solution provider. Both companies have been making strategic investments as of late. Since being acquired by Kelso, Sirius has made three acquisitions. In December 2016, Sirius acquired solution provider Continuum Worldwide and IBM infrastructure solutions provider thinkASG, while in April 2016, it acquired security-focused solution provider Force 3. As for Forsythe, it has purchased 10 companies since 2001.
  • Diverse Portfolio: As a 100 percent employee-owned company with a diverse and broad portfolio, Forsythe has been making a string of strategic acquisitions to increase scale. For the last four years, sales have remained at ~$1.1 billion, and the company has been profitable for 46 consecutive years. In addition, its share price valuation in December 21, 2016 was the highest in its history. On top of strong revenues, Forsythe launched a multicloud private storage offering and a security incident and event management (SIEM)-as-a-Service offering. The company must navigate a unique leadership structure on top of margin pressure in the enterprise market.
  • Strong Partnerships: Sirius is IBM's largest value-added reseller in the US that serves medium to large enterprises. In addition, Sirius has several key partnerships; it is a Premier VMware Partner, a Platinum Partner with HPE and Intel, a Gold Partner with Cisco, Microsoft, and Trend Micro, and an AWS partner. Similarly, Forsythe holds key partnerships with Dell, IBM, VMware, HPE, Symantic, Cisco, Citrix, and NetApp. Additionally, the company has over 40 Partner of the Year awards. 
 
For more information about this potential transaction,  click here to read the CRN report.

*Financial Information from S&P Capital IQ. 

martinwolf was not the advisor in this transaction.

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With offices in the San Francisco Bay Area and New York, martinwolf is a leading M&A Advisory focused on middle market companies in the IT Services, IT Supply Chain, IT-Enabled Business Process Outsourcing and Software as a Service (SaaS) space. Since 1997, our team has completed more than 150 transactions in over 20 countries and sold seven divisions of Fortune 500 companies. 

 

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