Merger more than doubles presence of storage VAR Datalink

By buying the privately held MCSI, Datalink will more than double its locations and extend its depth in storage area network (SAN) integration.

Chanhassen, Minn.-based storage integrator Datalink Corp. announced yesterday that it had acquired Midrange Computer Solutions, Inc. (MCSI), a Chicago-based storage integrator that lists 18 offices nationwide.

The acquisition increases Datalink's revenue base by one third, according to Charlie Westling, Datalink president and CEO and more than doubles Datalink's 14 locations in 12 states.

Datalink paid a total of $14 million for MCSI, $5 million in cash and $9 million in Datalink stock, according to the announcement. MCSI's 2006 revenues were about $47 million.

MCSI's operations will be combined with those of Datalink, with most of the integration happening during the first half of this year, according to the statement. Datalink expects to save between $1 million and $2 million in operational expenses.

The statement did not include details about what overlapped functions might be eliminated, or whether offices might be closed. It did list MCSI as having 14 offices, though MCSI's Web site lists 18.

MCSI is a private company that specializes in storage area networks (SAN) for the healthcare, communications, manufacturing and financial services markets. Datalink lists SANs, network-attached storage (NAS), direct-attached and IP-based storage as its technical specialties.

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