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Logicalis Goes On Buying Binge

Logicalis, one of Hewlett-Packard's largest enterprise server and storage solution providers, Monday reached an agreement to acquire Solution Technology Inc. (STI), a $90 million IBM Business Partner. It also says more acquisitions are on the horizon.

"This gives us a big seat at the [IBM] table," said Logicalis CEO Mike Cox.

Logicalis, Bloomfield Hills, Mich., is also on the verge of growing its HP business through a pending acquisition, Cox added. "We want to leave no doubt that we are HP's largest enterprise server and storage solution provider and that we have a clear commitment to HP," he said, noting that Logicalis has signed a letter of intent to acquire a regional HP-only solution provider. Cox declined to identify the company because the deal won't be finalized for several weeks.

Logicalis did about $85 million in HP business last year, a growth of 4 percent over the prior year.

Cox said Logicalis needs the geographic reach, technical certifications and the IBM value-add authorizations from Indianapolis-based STI to establish itself as a major national IBM player. Logicalis, which did about $10 million in IBM business last year, is on track to grow that business organically to $20 million this year, he said.

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