As I said before, the company's strategy includes expanding its services and growing revenues through acquisitions. Datalink has already a history of reported acquisitions, the last three of which I will try to describe in order to understand the type of companies can be potential targets as well as understand the company's strategy.

Networking Solutions Division of Cross Telecom (Oct - 2009)

[Introduction of Networking solutions business]

  • Datalink acquired the networking solutions division of Cross Telecom, thus being responsible for the team.

  • Cross Telecom was responsible to introduce Datalink to customers who need storage and data center virtualization.

  • DTLK became Cisco Silver Certified Partner

  • The operation cost $ 2.0 mn in cash while Cross agreed to buy $1.8 mn to Datalink for Cisco products and services over the next 3 years. 

  • Cross undertook to pay any gap between customers' purchases and a guaranteed annual amount. In 2010 it gave rise to the receipt of $503k and $574k in 2011.

  • In October 2011 agreed with Cross prepayment of the remaining derivative agreement made: $ 553k ("Other Income")

Reseller business of Incentra, LLC (Dec - 2009)

[Expandind reseller business and strenghening market presence]

  • Incentra is a private company that provides technology, consulting and outsourcing services to medium and large companies in various industries. It designs, acquires, implements and supports data center solutions that include technologies that encompass storage, networks and servers from leading manufacturers.

  • The portfolio management services and related operations are not included in this transaction.

  • Doubled its presence in Chicago and the Northeast and allowed a significant presence in the West.

  • $100 mn in revenues and 2,000 customers.

  • They paid $13.8 mn ($8,8mn and $5mn in Cash and WC, respectively)

Midwave Corporation (Oct - 2011)

[New focus on consulting services]

  • Headquartered in Minneapolis Midwave is a company that provides IT services and solutions to optimize data centers and IT infrastructure.

  • Shares DTLK's strategy and portfolio of services as well as good reputation.

  • The reseller business technology associated with consulting and account management business accounts for about $ 65mn in revenue and over 250 employees.

  • It was a peaceful acquisition in which the CEO of Midwave became Executive Vice President of Strategy and Business Development at Datalink.

  • Doubles the exposure to Cisco and doubles the consulting team.

  • All the assets were bought by $19.1 mn ($16.1mn, $1.6mn and $1.4mn in Cash, stock issue and WC, respectively).

The acquisitions have enabled the company to extend its area of ​​expertise until today. Moving from ttorage (initially) for networking, servers and even consulting unit in which is now investing more. 

The company has been making acquisitions over a period of 12-18 months and is expected to continue that trend. By the end of 2012 early 2013 it is expected the announcement of another target.