No terms were disclosed about this deal, but this is what CDN has learned. This was an all-cash transaction and TeraMach, who is celebrating 20 years in business this year, listed revenues in 2015 between $75 to 100 million on the CDN Top 100 list. They will continue to be a separate company and both TeraMach offices (Ottawa and Markham, Ont.) will remain open.
Based in Toronto, Pivot considers itself a Canadian company, however the organization deals predominately in the U.S. With TeraMach, Pivot intends to position the solution provider as its Canadian arm. Darlene Kelly, the COO of TeraMach has been retained to run the new operation. The TeraMach name is also not going away. They will be known as TeraMach, A Pivot Company going forward.
Darlene Kelly, COO of TeraMach told CDN the company is “super excited” about becoming part of the Pivot family.
The new company’s combine expertise will be on data centre transformation, collaboration, cloud, end-user computing, security and networking. New to this list is Pivot’s services capabilities as well as new vendor authorizations such as Apple, APC, Red Hat and Pure Storage.
Also with Pivot, TeraMach gains access to an international sales team that could make data centre deployments more cost effective. They will also have use of Pivot’s InterConnect solution, a secure, customized B2B eCommerce platform for procurement. And, TeraMach also gets a Integration Centre for staging, configuration, testing and inventory management.
Pivot CFO Brian Kyle, said the two organizations will share in best practices, coordinate sales teams along with sales efforts. But Kyle did caution there was no duplication between the two operations.
Current customers of TeraMach will not have any of their existing agreements changed now that it’s a Pivot company.
Pivot is a public company listed on the TSX.