European systems integrator Getronics has acquired managed service provider Pomeroy in order to meet the needs of European customers in the U.S. market. With this acquisition, Getronics seeks to serve global customers by saving production costs, marking a return to the North American market.
Getronics say that the demand for ICT (Information and Communications technology) products in the U.S. market is huge. They believe that this demand is a result of the rise of managed service providers as well as the adoption of cloud technology across the country.
According to Getronics, their European clients doing business in the U.S. market demanded sophisticated ICT products to scale their IT operations. Since they saw synergies with the visions of their clients, Getronics decided to re-enter the North American market catering to various customer needs.
This acquisition of Pomeroy, Getronics claim, is a huge strategic advantage in terms of gaining product muscle to serve their European customers. They say that since Pomeroy already has access to these products, meeting the requirements of customers will be much easier.
Speaking about the acquisition, industry observer and M&A Advisor Martin Wolf, commented:
The accounts Getronics has in Europe have product needs in the U.S. and Pomeroy has access to those products. This is low-hanging fruit for Getronics, creating cost efficiencies and synergies to serve global accounts.
Getronics claim that with this deal, they have come closer to their target of becoming a billion-dollar company two years prior to the estimated time. Nana Baffour, Chairman and CEO at Getronics, claimed:
This reflects the power of our dreams and the dedicated execution of our team and financial partners, and we are excited about the value and customer experience that the new combination will allow us to deliver.
Our operations are now significantly strengthened globally, extending from Brazil to Singapore and from Spain to the U.S. and Canada, with over 2,800 active clients.