PCM starts the year with an acquisition
PCM, one of the leading technology providers in North America, has started 2017 with a big acquisition. On Tuesday, it acquired Stratiform, an industry leading provider of a wide range of cloud services. It paid a sum of C$2.1 million based on the closing price of Stratiform’s shares on December 29, 2016. In addition, it has agreed on a potential payout of C$1.75 million over a period of three years. Stratiform’s revenue was C$5.5 million for the fiscal year that ended on July 31, 2016.
This acquisition is expected to give a big fillip to PCM’s hopes of becoming a leading cloud provider in this region. In fact, Stratiform’s cloud-based products and services will lay the foundation for PCM’s cloud-related offerings. Through this acquisition, PCM plans to leverage on the clouds expertise of Stratiform to expand its own presence in Canada and the United States, and also reach out to more markets, especially small and medium business (SMB), mid-market, and public sector enterprises of North America. Stratiform is also a Microsoft Gold Partner, so this acquisition is likely to give PCM a better foothold in the world of Azure, Office 365, and Enterprise Mobility Suite.
Stratiform was founded in 2012 by Jordan Byman and Darren Lloyd, with a clear aim to focus on Microsoft-related technologies. Within a short time, this company became a Microsoft Gold Partner for devices, deployment, cloud services, connectivity, and a Microsoft Silver Partner for hosting cloud solutions in the small and mid-market business segments. This company offers professional consulting, designing, and planning services on a wide range of Microsoft solutions. According to its LinkedIn profile, it employs anywhere 11 to 50 people. All this points to a small company that had an amazing run over the four years since its founding.
PCM, on the other hand, was founded in 1987, and is headquartered in El Segundo, California. With more than 3,700 employees spread across its 45 locations in the United States, Canada, Pakistan, and the Philippines, this company has an annual total revenue of more than $1.6 billion. Its operations is divided into many subsidiaries that include sales, services, marketing, logistics, and business process outsourcing (BPO).
This acquisition augurs well for PCM, as it can give it a strong foothold in the cloud market. In this sense, Stratiform is a good choice for acquisition, as it has an established market and expertise that has to be built on by PCM. Historically, PCM has expanded its operations and revenue by way of strategic acquisitions. It was founded as a telemarketing, direct marketing, and print catalogs company, and it made a foray into other areas by acquiring companies such as PC Wintel, Computability, Wareforce, Data Systems Worldwide (DSW), and En Pointe Technologies and Sales Inc.
As for Stratiform, it had a dream run, and it can continue building its expertise with a larger pool of resources, thereby giving the brains behind Stratiform a better chance to reach out to a global audience.
In all, 2017 started off on a great note for both the companies!