Konica Minolta Acquires Managed IT Services Provider All Covered
Konica Minolta Business Solutions U.S.A. announced on January 6 that it has acquired All Covered, a provider of managed IT services to small- and medium-sized businesses (SMBs). Details of the purchase were not available, but according to InformationWeek.com, All Covered has annual revenue of approximately $60 million. Through its 22 offices across the country, the firm offers a range of services including proactive server management, remote monitoring, cloud computing, on-site network support, and consulting.
In its press release, Konica Minolta indicated that the acquisition allows it to expand its service offerings and increase its share of the U.S. managed services market. In a prepared statement, Rick Taylor, COO and senior executive vice president at Konica Minolta Business Solutions U.S.A., said, ”Konica Minolta’s acquisition of All Covered will further enhance our ability to deliver sophisticated solutions to our customer base and accelerate the expansion of our IT services business.” InformationWeek reported that Mr. Taylor estimates the highly fragmented SMB market for managed IT services is worth roughly $18 billion annually.
All Covered itself has a legacy of growing through acquisition. The firm announced plans in 2010 to acquire 50 solutions providers over the next several years. According to the website MSPmentor, All Covered will continue to pursue its urge to merge. It will retain its brand and operate as an independent business. None of All Covered’s 350 jobs are expected to be cut as a result of the deal.
Konica Minolta kicks off the New Year by continuing to add to its managed services assets. Snagging All Covered provides the firm with access to the SMB market, which has proved to be hard to penetrate for many printer and copier vendors. While we in the digital imaging industry pay a lot of attention to managed print services, OEMs have shown an affinity for a variety services that go beyond hard copy. You can expect to see printer and copier hardware vendors continue to buttress their hardware and supplies businesses with more IT services like those offered by All Covered. With the increasing availability of capital and strong balance sheets, 2011 will witness a healthy amount of M&A activity. Stay tuned!
Read Konica Minolta press release.
Read MPSmentor managed services news and blog.
