Dimension Data has purchased all of Nexus, an IT network integrator, a move that deepens its presence in the U.S. and broadens its services portfolio for high growth vertical segments like education, retail, hospitality and healthcare.
By making this deal, Dimension Data will immediately expand its U.S. operations by 40 percent and increase its presence in the West, Southwest and Southeast regions. Today, Nexus has 19 offices in in California, Nevada, Colorado, Arizona, Utah, Washington, Texas, Georgia, Florida and North Carolina.
"For us, this acquisition is about growing the business," said Mark Slaga, CEO of Dimension Data, in an interview with FierceTelecom. "Our goal is to grow from $1 billion to $3 billion in the Americas over the next five years and that's got to be based on strong organic growth as well as picking out a few select companies to partner with."
The benefit for existing and new clients is that they will have access to a broader set of expertise and portfolio of IT solutions.
Besides broadening the geographic reach and service capabilities, the acquisition will give it access to a larger set of clients. Nexus has traditionally served Fortune 2000 customers, while Dimension Data serves mainly Fortune 500 companies and up.
"We--with our global capabilities, our cloud and outsourcing capabilities--bring a lot to the Nexus clients," Slaga said. "They are also very strong in health care, state and local government, education and retail so they bring some solutions to our clients that can strengthen what we do."
Under the new management structure, current Nexus CEO Deron Pearson will report to Slaga and continue to lead the Nexus business. Meanwhile, Nexus President and COO Waheed Choudhry will continue to run Nexus's day-to-day operations, reporting to Pearson.
Slaga said that over the next 18 months they will bring "the two families together and ultimately it will be all part of Dimension Data under one brand."
This acquisition is part of a broader three-pronged strategy to increase its presence in three growth regions--United States, Europe, and Japan--via organic growth and targeted acquisitions. A key part of that strategy is focused on being on the top three market of a particular geographic region.
Its acquisition of Nextira One last December immediately enhanced its presence in the European market, for example.
- see the release
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Updated article on April 23 with correct name of CEO of Mark Slaga.