Insight Closes Acquisition of Datalink
January 06 2017 - 12:14PM
Insight Enterprises (Nasdaq:NSIT), an Intelligent Technology
Solutions™ provider (“Insight” or “the Company”), announced that it
has completed the acquisition of Datalink Corporation, a leading
provider of IT services and enterprise data center solutions based
in Eden Prairie, Minn. (“Datalink”).
The business combination strengthens Insight’s position as a
leading IT solutions provider with global scale and deep technical
talent delivering data center solutions to clients on premise or in
the cloud.
Highlights of Acquisition
- Increases addressable market opportunity in hybrid cloud and
other high-growth data center categories
- Enhances go-to-market engagement with a solutions-led
approach
- Drives scale and growth by adding complementary capabilities,
partner relationships and clients in key U.S. markets
- Leverages Company’s best-in-class digital marketing engine to
bring scalable solutions to the mid-market
- Benefits from consistency of culture, values and vision across
the organizations
- Achieves higher gross margins with increased services sales and
higher growth, higher margin product categories
“We are pleased to announce the closing of this strategic
acquisition. Insight has a clear strategy, global scale and a
proven focus on operational excellence. Datalink adds deep
technical talent and complementary services offerings around high
growth technology areas. We are excited about the potential
of this attractive combination,” said Ken Lamneck, CEO of Insight.
“Together, we are well positioned to compete, grow, and win with
comprehensive data center solutions in the marketplace.”
The Company expects the Datalink business to contribute between
$600 - $620 million in net sales and to be accretive to Adjusted
EPS in 2017, including approximately $12 million of expected
amortization expense on acquired intangibles. This outlook
excludes approximately $8 million in transaction-related expenses.
In addition, the Company expects to realize run-rate cost savings
of approximately $20 million within 2 years of closing.
Forward-Looking Information
Certain statements in this release are “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements can usually be
identified by the use of words such as “aim,” “anticipate,”
“believe,” “continue,” “could,” “estimate,” “evolve,” “expect,”
“forecast,” “intend,” “looking ahead,” “may,” “opinion,” “plan,”
“possible,” “potential,” “project,” “should,” “will” and other
expressions which indicate future events or trends.
Forward-looking statements, including the Company’s expectation
that the transaction will contribute between $600-$620 million in
net sales and be accretive to Adjusted EPS in 2017 and will allow
the Company to achieve higher gross margins and realize significant
cost savings in future periods, are inherently subject to risks and
uncertainties, some of which cannot be predicted or
quantified. Future events and actual results could differ
materially from those set forth in, contemplated by, or underlying
the forward-looking statements. There can be no assurances
that results described in forward-looking statements will be
achieved, and actual results could differ materially from those
suggested by the forward-looking statements. Some of the
important factors that could cause the Company’s actual results to
differ materially from those projected in any forward-looking
statements, include, but are not limited to, the following, which
are discussed in “Risk Factors” in Part I, Item 1A of the Company’s
Annual Report on Form 10-K for the year ended December 31, 2015 and
in other of the Company’s filings with the Securities and Exchange
Commission:
- Risks associated with the transaction and integration of
Datalink into Insight’s operations, processes and systems,
including:
- the Company may be unable to achieve expected synergies and
operating efficiencies in the merger within the expected time
frames or at all and to successfully integrate Datalink’s
operations into those of Insight;
- such integration may be more difficult, time consuming or
costly than expected and may disrupt the Company’s current plans
and operations;
- revenues following the transaction may be lower than
expected;
- operating costs, customer loss and business disruption
(including, without limitation, difficulties in maintaining
relationships with employees, customers, clients or suppliers) may
be greater than expected following the transaction;
- uncertainties surrounding the transaction;
- the outcome of any legal proceedings related to the
transaction;
- Datalink and/or Insight may be adversely affected by other
economic, business, and/or competitive factors;
- the Company may not be able to retain the key employees of
Datalink;
- actions of the Company’s competitors, including manufacturers
and publishers of products the Company sells;
- the Company’s reliance on partners for product availability,
competitive products to sell and related marketing funds and
purchasing incentives;
- changes in the IT industry and/or rapid changes in
technology;
- possible significant fluctuations in the Company’s future
operating results;
- general economic conditions;
- the risks associated with the Company’s international
operations;
- the security of the Company’s electronic and other confidential
information;
- disruptions in the Company’s IT systems and voice and data
networks;
- failure to comply with the terms and conditions of the
Company’s commercial and public sector contracts;
- the Company’s reliance on commercial delivery services;
- the Company’s dependence on certain personnel;
- exposure to changes in, interpretations of, or enforcement
trends related to tax rules and regulations; and
- intellectual property infringement claims and challenges to the
Company’s registered trademarks and trade names.
Additionally, there may be other risks that are otherwise
described from time to time in the reports that the Company files
with the Securities and Exchange Commission. Any
forward-looking statements in this release should be considered in
light of various important factors, including the risks and
uncertainties listed above, as well as others. The Company
assumes no obligation to update, and, except as may be required by
law, does not intend to update, any forward-looking
statements. The Company does not endorse any projections
regarding future performance that may be made by third
parties.
About Insight From business and
government organizations to healthcare and educational
institutions, Insight empowers clients with Intelligent Technology™
solutions to realize their goals. As a Fortune 500-ranked global
provider of hardware, software, cloud and service solutions, our
5,700 teammates provide clients the guidance and expertise needed
to select, implement and manage complex technology solutions to
drive business outcomes. Through our world-class people,
partnerships, services and delivery solutions, we help businesses
run smarter. Discover more at insight.com. NSIT-F
Insight Contacts:
Investors:
Helen Johnson
Insight Enterprises
Tel. (480) 333-3234
Email: helen.johnson@insight.com
Media:
Amy Protexter
Insight Enterprises
Tel. (480) 409-6710
Email: amy.protexter@insight.com
Ariel Kouvaras
Sloane & Company
Tel. (212) 446-1884
Email: akouvaras@sloanepr.com
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