Datalink Corp. closed out the month of October with the announcement that it had acquired Bear Data Solutions for $18.5 million. Datalink expects the acquisition of San Francisco-based Bear to expand its client base on the West Coast.
The new deal is projected to gain Datalink 1,000 new midmarket and enterprise customers. Through the acquisition, clients will be able to access a greater selection of services and skills as well as receive support from a 24-hour contact center. The deal will enable Datalink to quadruple its revenue in West Coast markets to more than $200 million. The acquisition is expected to save Datalink between $1 and $2 million because both companies will be able to share resources.
"This is an important strategic acquisition that will significantly expand our West Coast operations and give us a large new base of customers for solutions and services that are beyond the scope of Bear's current offerings," said Datalink president and CEO Paul Lidsky.
Datalink has been acquiring organizations of a similar size to Bear Data Solutions – which had revenues of $130 million in 2013 – as part of a drive to reach $1 billion in revenue, which Lidsky says the company is on pace to do within five years.