Datalink Buys Midwave for $17 Million
Datalink (DTLK), a provider of data center infrastructure and services, has acquired Minneapolis-based data center IT services firm Midwave Corporation in a $17.6 million purchase. The acquisition puts Datalink, which is headquartered in Minnesota with 29 locations in 19 other states, in a position to close 2011 with an anticipated annualized run rate of more than $400 million and 400 employees.
Midwave’s consulting and managed services business, along with its technology resale business, represents an estimated $65 million in annualized revenue and a base of more than 250 customers.
“This acquisition doubles our Cisco technology and services revenues, expands our managed services portfolio with the addition of a data center infrastructure monitoring service, adds an established security practice including product, services and consulting and doubles the size of our consulting services team,” said Paul Lidsky, President and CEO, Datalink.
“Midwave and Datalink are a perfect combination,” said Midwave Chairman and CEO Jim Leslie, who is joining Datalink as Executive Vice President of Strategy and Business Development. “Together, we believe we have unparalleled professional and sales teams, data center best practices, and a passion for delivering long-term, value-based services to our customers. I am excited that Midwave’s talented team of employees will have the opportunity to join a growing and reputable company, like Datalink. And, our customers can continue to count on the first rate service that they are accustomed to receiving.”
Datalink plans to complete integration of the Midwave business within 90 days.