Telecommunication and IT services company Gage has acquired GenTech Power Solutions, a company that installs, maintains, and repairs standby generators for homes and businesses across southeast Louisiana.
Financial details for the deal were not disclosed. Reports suggest payments tied to the deal will be made over a two-year period. Gage will absorb GenTech’s existing client and generator maintenance service contracts.
It's an intriguing strategy -- especially considering the physical location of Gage and GenTech. Both companies are based in Baton Rouge, Louisiana. Amid natural disasters including Hurricanes Harvey and Irma, customers in the Gulf region apparently want partners that provide both data reliability and power reliability.
Gage began adding standby generators to its services in 2010 as part of its disaster recovery and backup continuity solution. GenTech is the next natural step in that strategy, the companies assert.
Amidst recent natural disasters, including Hurricanes Harvey and Irma, backup generators have become important resources. A chemical plant in Crosby, Texas exploded after Harvey-related rain and flooding knocked out primary and backup power, and of course many businesses had their data threatened as the storms rose through and the flood waters rose.
According to the Greater Baton Rouge Business Report, GenTech generally contracted out its work and had just two full time employees at the time of the deal, including owner Clifton Collins. Neither employee will remain with the company, though Gage is ramping up its overall business with three to five new employees this year, reports say.
This isn’t the company’s first acquisition. The firm also acquired a Mississippi telephone company in 2015.