Converge Technology Solutions is dead set on becoming one of the fastest-growing solution providers in North America and Europe via acquisitions, with the goal of buying $1 billion in revenue per year from M&A.
The $1.5 billion Quebec-based solution provider continued its M&A march to consolidate smaller solution providers under one umbrella this week with the acquisition of Canada-based 1CRM Systems, marking Converge Technology Solutions’ 28th acquisition since 2017.
In a recent interview with CRN, Converge Technology Solutions CEO Shaun Maine said his company will acquire between eight and 12 solution providers in North America and Europe in 2022.
“For the next three years, we’re going to buy $1 billion of revenue in the channel: $400 million in North America, 400 million euros in Europe—per year,” said Maine.
[Related: Converge Technology CEO On Channel Consolidation, M&A And Private Equity]
Converge Technology Solutions plans to acquire between four and six solution providers based in Europe this year as well as four to six solution providers based in North America, with a focus on those that have strong midmarket customer bases.
Converge Technology Solutions was able to raise $640 million over the past 18 months in the public markets because investors witnessed how successful it was around executing M&A and then driving sales growth inside the acquired company, Maine said. Converge Technology Solutions is providing midmarket solution providers it acquires the ability to scale, cross-sell, offer better customer engagement, and expand the cloud and digital transformation capabilities midmarket customers are begging for.
“This is a better way of growing. Some people try to grow by hiring salespeople or training them up as new grads. I would rather buy people with great customer relationships and cross-sell,” said Maine. “We grow organically through the cross-sell, but no one can compete with my growth rate when I can buy the way I buy companies with the way I grow companies.”
In February, Converge Technology Solutions acquired Germany-based Visucom GmbH, which provides screens, interactive blackboards, displays and media control products and services. In January, Converge Technology Solutions bought Delaware-based PDS Holding Company, which included solution provider Paragon Development Systems that specializes in managed services and digital workplace platforms.
The company’s acquisition this week of 1CRM was made by Converge Technology Solutions subsidiary Portage CyberTech with plans to leverage 1CRM’s SaaS-based software suite that has been deployed in thousands of customer sties across North America, Europe and Australia.
1CRM specializes in cloud software solutions that equip SMBs with integrated business information while improving their cost model and streamlining their internal business processes. The company’s software operates both in the cloud and on-premises with the ability to handle daily task management, marketing automation, sales and opportunities, order management, client service and project management via a single system.
The company’s flagship product, 1CRM Enterprise Edition, is a cloud-based service that blends best-of-breed CRM with business management features for accounting, project tracking and service management.
“We are a growth partner in the midmarket, which is a segment that the OEMs don’t do very much in. They sell direct to the Fortune 500 really well but they don’t do midmarket very well. This is where we really can help them out,” said Maine. “The whole strength of what we do is our people and customer relationships.”
Converge Technology Solutions was recently named to CRN’s 2022 MSP Elite 150 list.