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Datalink Announces Closing Of The Purchase Of Strategic Technologies And Provides Third Quarter Guidance Update

Stocks in this article: DTLK

Datalink (NASDAQ: DTLK), a leading provider of data center infrastructure and services, today announced the closing of the transaction to acquire substantially all of the assets and liabilities, of Cary, North Carolina-based Strategic Technologies, Inc. (“StraTech”), which was announced on October 2, 2012. StraTech is an IT services and solutions firm that shares Datalink’s focus on optimizing enterprise data centers and IT infrastructure through a common product and services portfolio designed to help customers increase business agility.

The acquisition increases Datalink’s market share and physical presence across the Eastern seaboard, including North Carolina, Florida and the Mid-Atlantic; adds an estimated $65 million in annualized product and services revenues; and contributes more than 400 additional businesses to the customer base. It will also advance Datalink’s strategic initiatives by delivering:

  • Expanded sales, engineering, managed services, customer support, consulting and marketing teams to support ongoing growth.
  • A continued focus on both the storage and unified computing aspects of its data center integration business, including significant increases in Symantec, NetApp and HDS revenues.
  • More than $20 million in additional annual recurring OneCall technical support revenues, along with a second call center providing increased capacity and enhanced failover and redundancy.
  • Larger professional and managed services organizations to handle consulting projects as well as managed archiving, backup, security and monitoring services.

Datalink purchased StraTech for approximately $13.2 million in cash and the issuance of 269,802 shares of Datalink common stock, assumed approximately $20.8 million of StraTech’s liabilities and acquired approximately $16.0 million of assets, subject to a final audit expected to be performed within 90-120 days after the closing.

With the addition of StraTech, Datalink will be positioned to close 2012 with an anticipated annualized run rate of more than $500 million and a workforce of over 450 employees.

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