PE-Backed Novatech Acquires Xerox Partner Pahoda Image Products
This is technology M&A deal number 445 that ChannelE2E has covered so far in 2021. See all technology M&A deals for 2021 and 2020 listed here.
The Denver, Colorado-based Pahoda Image Products will maintain its name and branding, operating as a stand-alone portfolio company of Novatech, the company said.
Novatech Acquires Pahoda: “An Exciting Day”
Dan Cooper, CEO, Novatech, commented:
“This is an exciting day at Novatech and Pahoda. We’re excited to leverage the knowledge, resources, and partnerships Pahoda’s founder Jesse Harwell has cultivated over the past decade. We’re also thrilled to continue the Pahoda-Xerox partnership and maintain the Xerox portfolio of print technology solutions as the primary Pahoda copier/print offering.”
Founded in 1998 and headquartered in Nashville, Tennessee, Novatech offers managed IT and print services. The company was originally founded as NovaCopy in Memphis, Tennessee, before changing its name and headquarters in 2004.
Novatech has conducted a series of strategic acquisitions in recent years as it seeks to expand throughout the United States. Earlier deals include:
- September 2019: Copy & Camera, a managed print services provider from Lafayette, Louisiana.
- April 2019: DynaSis, an Atlanta, Georgia-based MSP
- January 2019: Consolidated Copier Services of Conyers, Georgia.
Xerox’s Partner Push
Meanwhile, Xerox has also been acquiring channel partners of its own as it seeks to better serve its SMB (small and midsize business) customers. Recent deals include Document Systems in June 2021, Groupe CT in May 2021, and Digitex in March 2020.
The series of deals does raise questions about potential conflict within Xerox’s partner network. In a previous statement, the company said it wanted to strengthen its U.S. SMB market reach through a combination of its own portfolio of workplace solutions and local technology providers.
Still, Xerox has pushed various IT services to SMB customers since February 2020. Those direct-to-customer Xerox services include hardware procurement, professional engineering, IT product support, managed IT services, information security management and vCIO services.
As ChannelE2E’s Joe Panettieri pointed out in March 2020: “Roll it all together, and Xerox essentially is becoming an MSP to SMB customers.”