Converge Technology Partners has acquired BlueChipTek Inc, an information technology professional services company that serves Silicon Valley clientele.
According to Converge, BlueChipTek “brings a high level of expertise in data center infrastructure integration, a comprehensive approach to cloud optimization, and the proven ability to deliver data center infrastructure solutions throughout the world.”
BlueChipTek's key partners include Amazon Web Services, Dell Technologies, Juniper and SuperMicro, the company indicates. The firm has additional relationships across servers and components; next-generation storage; software-defined networking; data center racks and power; traditional storage and traditional network.
Roughly 33 BlueChipTek employees will join Converge's 300+ team members. Actual headcount surges above the 400-person mark when you roll in contractors who work with Converge, a spokesperson for the company tells ChannelE2E.
BlueChipTek CEO Jessica Geis and VP of Sales Jason Geis will continue to drive that business forward. Cindy Kennedy who, according to her LinkedIn profile, previously held positions at both Corus360 and Key Information Systems, becomes president of BlueChipTek. Kennedy will work with the existing management team to expand key offerings and coordinate cross-selling opportunities, the company said.
Converge Technology Partners: Additional Acquisitions
This deal is the latest in a series for Converge, which has acquired five companies since October 2017. Converge’s portfolio also includes Corus360, Northern Micro, Becker-Carroll, and Key Information Systems. Converge says it is building a national platform of regionally-focused IT infrastructure firms in the US and Canada.
M&A activity across Silicon Valley and the broader IT market remains strong. According to one recent study, the number of mergers and acquisitions in the technology, media, and telecom sector reached an all-time high in 2017.
Pundits say the trend won’t decelerate anytime soon as buyers seek sellers that have digital transformation, cloud, compliance, security, vertical market and regional expertise.
Within the IT services sector, ChannelE2E expects M&A activity to remain strong as well -- for the reasons outlined above, along with demographic drivers (i.e., business owners aging out of the market).
One needs only look at the string of recent deals to see that interest remains high from both companies looking to buy and those looking to sell, and private equity firms flush with cash continue to scour the market for quality sellers. The deal making, however, doesn't necessarily mean valuations will continue to climb.
Additional insights from Joe Panettieri.
