INX has acquired the operations of NetTeks Technology Consultants. NetTeks (News - Alert) is a Massachusetts based network consulting organization and has offices in downtown Boston and Glastonbury, Connecticut.
The initial purchase price paid at closing consists of 30,770 shares of INX (News - Alert) common stock along with $1.35 million cash. If operating income contribution from the acquired operations meet certain expected levels during the first two years following the transaction, INX will also consider contingent purchase consideration of up to a maximum of approximately $2.8 million.
INX expects this acquisition to make a significant impact on the future prospects of the company. NetTeks is an award winning Cisco (News - Alert) Silver and Managed Services Certified Partner. The company is one of the early players in deploying the Cisco Unified Communications solutions. This early bird status has provided the company with valuable experience in architecting, says INX.
Mark Hilz, President and COO of INX, commented, “INX is making a significant commitment to our presence and capability in the New England region. This acquisition, coupled with our existing Boston operations, will create one of our largest regions.”
INX chose to acquire NetTeks as the company had a long standing reputation in its field. INX believes that this acquisition adds a team of extremely talented group of employees to its company. The company also believes that it adds interesting additional capabilities for its customer set.
For INX, this acquisition comes at a time when the company has been winning new clients and businesses. In October, the company was selected by a western U.S. retailer seeking to upgrade its headquarters communications technology. The contract represents approximately $850,000 in network and communications products and professional services revenue for INX.
For NetTeks, this acquisition will open the doors to capital and other resources from INX with which the company can create additional growth opportunities for the future. Factors such as INX's strong balance sheet accredited managed service offering and its national presence will help NetTeks to improve its business. Raju Shanbhag is a contributing editor for TMCnet. To read more of Raju's articles, please visit his columnist page.
Edited by Jessica Kostek