Insight Closes Acquisition of Datalink
LONDON, UK; 10 January 2016 – Insight Enterprises (Nasdaq:NSIT), an Intelligent Technology Solutions™ provider (“Insight” or “the Company”), announced that it has completed the acquisition of Datalink Corporation, a leading provider of IT services and enterprise data centre solutions based in Eden Prairie, Minn. (“Datalink”).
The business combination strengthens Insight’s position as a leading IT solutions provider with global scale and deep technical talent delivering data centre solutions to clients on premise or in the cloud.
Highlights of Acquisition
- Increases addressable market opportunity in hybrid cloud and other high-growth data centre categories
- Enhances go-to-market engagement with a solutions-led approach
- Drives scale and growth by adding complementary capabilities, partner relationships and clients in key U.S. markets
- Leverages Company’s best-in-class digital marketing engine to bring scalable solutions to the mid-market
- Benefits from consistency of culture, values and vision across the organisations
- Achieves higher gross margins with increased services sales and higher growth, higher margin product categories
“We are pleased to announce the closing of this strategic acquisition. Insight has a clear strategy, global scale and a proven focus on operational excellence. Datalink adds deep technical talent and complementary services offerings around high growth technology areas. We are excited about the potential of this attractive combination,” said Ken Lamneck, CEO of Insight. “Together, we are well positioned to compete, grow, and win with comprehensive data centre solutions in the marketplace.”
The Company expects the Datalink business to contribute between $600 – $620 million in net sales and to be accretive to Adjusted EPS in 2017, including approximately $12 million of expected amortization expense on acquired intangibles. This outlook excludes approximately $8 million in transaction-related expenses. In addition, the Company expects to realize run-rate cost savings of approximately $20 million within 2 years of closing.
From business and government organizations to healthcare and educational institutions, Insight empowers clients with intelligent technology solutions to realise their goals. As a Fortune 500-ranked global provider of hardware, software, cloud and service solutions, our 5,400 teammates provide clients the guidance and expertise needed to select, implement and manage complex technology solutions to drive business outcomes. Through our world-class people, partnerships, services and delivery solutions, we help businesses run smarter,
Source: Company press release