ConvergeOne Acquires AAA Network Solutions
ConvergeOne, which is backed by private equity fund CVC Fund, has acquired AAA Network Solutions for an undisclosed amount.
This is deal number 153 that ChannelE2E has covered so far in 2021. See all technology M&A deals for 2021 and 2020 listed here. Moreover, M&A activity among government IT solutions providers remains steady.
Based in Eagan, Minnesota, ConvergeOne provides cloud, collaboration and digital infrastructure solutions. The transaction strengthens ConvergeOne’s public sector solutions and expands its capabilities to support education customers, according to the company.
Headquartered in Buena Park, California, AAA Network Solutions has delivered education-focused solutions since 2009. The company’s expertise is in providing solutions to K-12 schools and in e-rate funding – a program that provides discounts to assist schools and libraries in the United States to obtain affordable telecommunications and internet access.
Now known as AAA Network Solutions, a ConvergeOne Company, the business will provide customers with a portfolio of service capabilities, cloud offers and collaboration solutions.
ConvergeOne Acquires AAA Network Solutions: Executive Insight
John A. McKenna Jr., chairman and CEO, ConvergeOne, commented on the deal:
“The importance of innovative education solutions has increased the need for public sector customers to turn to a proven, trusted advisor. AAA Network Solutions Inc. and ConvergeOne share a customer-centric approach and commitment to providing the highest level of customer satisfaction, responsiveness, and expertise.”
David Ngo, senior vice president, of AAA Network Solutions Inc., added:
“We are thrilled to join the leading technology solution provider in the industry. For over two decades, AAA Network Solutions Inc. has been driven by our passion to deliver customized public sector technology solutions. As part of ConvergeOne, we will leverage our combined solutions and services expertise to deliver even greater value to our customers.”
ConvergeOne serves more than 10,400 customers, including 62 percent of the Fortune 100 and 48 percent of the Fortune 500 customers across the healthcare, finance, manufacturing, education and energy industries, the company says.
The company came under scrutiny in early 2019 when Bloomberg reported that a ConvergeOne employee may have committed fraud, leading to a potential $11 million inventory writedown for the company.
ConvergeOne has been an active buyer on the M&A front. Past acquisitions include:
- December 2018: Acquired Venture Technologies, a Cisco Partner
- October 2018: Acquired Advantel Networks for West Coast reach
- February 2018: Acquired Arrow Electronics’ system integration business
- December 2017: Acquired Microsoft and Cisco partner Alexander Open Systems (OAS)
- August 2017: Acquired Cisco and Avaya Partner SPS
- December 2017: Acquired Cisco & VMware Partner Annese & Associates
- December 2015: Acquired Cisco Gold Partner SIGMAnet