Mar 5, 2004 : Infocrossing Acquires SMS for $36.5M

📅 March 5, 2004 - Infocrossing (infocrossing.com), a provider of IT and business process outsourcing services, announced on Thursday that it has entered into a definitive agreement to acquire all of the outstanding stock of data center outsourcing provider Systems Management Specialists (SMS) (smsoutsourcing.com). Under the financial terms, Infocrossing will pay $36.5 million in cash and Infocrossing stock.

The company said the deal combines two strong regional providers in New Jersey and California with complementary service offerings.
"The acquisition of SMS is an important step in solidifying our position in the outsourcing market," says Zach Lonstein, chairman and chief executive officer of Infocrossing. "The deal strengthens our capabilities, expands our market reach and provides the operating infrastructure to target additional growth opportunities. With the addition of SMS' experienced leadership team, we have the infrastructure and skills to deliver improved value for our clients and shareholders, and realize our vision of becoming a recognized leader among providers of strategic outsourcing services in the United States."
Infocrossing said that in the first year, it expects the acquisition to bring the company $33 million in additional gross revenue.
Patrick A. Dolan, chairman and CEO of SMS, will become president and COO of the company replacing current president and COO Robert B. Wallach, who will be promoted to the position of vice chairman.
The company said the transaction is expected to close within sixty days, subject to customary closing conditions.