Latest Alexander Open Systems News
Dec 19, 2017
Channel M&A: ConvergeOne Purchases Star Solution Provider AOS With Public Offering On Horizon Collaboration software powerhouse ConvergeOne has acquired Alexander Open Systems (AOS), a top Microsoft and Cisco partner, as the busy solution provider prepares to go public in the first quarter of 2018. AOS, an Overland Park, Kan.-based company that ranks No. 107 on the CRN Solution Provider 500, delivers a wide range of IT consulting and managed services, would add SharePoint and Service Request Management offerings to ConvergeOne's solutions lineup. Additionally, AOS maintains a strong presence in the Midwest. The deal will put John Lyons, president, and CEO of ConvergeOne's enterprise business, in charge of "AOS, a ConvergeOne company." Financial details of the transaction were not disclosed. "AOS has been providing leading-edge IT solutions in the Midwest for the past 25 years. In addition to bolstering our skills in Microsoft and Cisco, we can now offer SharePoint and Service Request Management solutions to our clients," ConvergeOne CEO John McKenna said in a statement. AOS CEO Jon Groves said his company would be "well-positioned" to become a market leader as part of ConvergeOne in the same statement. Groves has been with AOS since November 2016, joining four months after the company sold its cloud services business – AOS cloud – to Los Angeles-based Unitas Global, No. 455 on the CRN SP 500. ConvergeOne has been actively expanding its business in recent years, as AOS marks its 13th solution provider acquisition since 2009. The acquisition spree has most recently included the $300 million networking MSP Strategic Products and Services (SPS) – No. 74 on the CRN Solution Provider 500 – in August, Cisco gold partner Annese and California powerhouse Sigmanet. Private equity firm Clearlake Capital Group assumed ownership of ConvergeOne in 2014. Earlier this month, ConvergeOne announced its intention to become publicly-traded via a merger with special-purpose acquisition firm Forum Merger Corp. The deal allows ConvergeOne to join the Nasdaq at an estimated valuation of $1.2 billion. As part of the announcement, ConvergeOne outlined its intent to place significant focus on the double-digit growth collaboration market. Specifically, the company sees a wide swath of businesses looking toward the cloud to reduce their capital expenditures around collaboration. ConvergeOne does business with more than half of the Fortune 100, with vertical expertise in the healthcare, finance, manufacturing, education and energy spaces. Collaboration sales are projected to account for nearly 70 percent of company revenue in the fiscal year 2018, according to a filing with the U.S. Securities and Exchange Commission.