System 5 Acquired By Pomeroy
Project Short Description: Pomeroy Acquires System 5
Pomeroy Computer Resources (NASDAQ: PMRY) (“Pomeroy”) announced the successful completion of its acquisitions of Ballantyne Consulting Group (“Ballantyne”) and System 5 Technologies, Inc. (“System 5?). The strategic acquisitions combine two Charlotte-based firms to create an expanded IT Services platform for Pomeroy. Ballantyne and System 5 complement Pomeroy’s existing operations by adding approximately $35 million in annual revenue, over 100 technology professionals and additional market penetration in Charlotte, Atlanta, Greenville (SC), Nashville, Raleigh, Richmond and Tampa. Ballantyne and System 5 are technology partners and have jointly executed projects since 1998.
Commenting on the transaction, Steve Pomeroy, President of Pomeroy, said:
“This marks a continued step in our expansion plan, creating an expanded IT Services arm that provides end-to-end infrastructure design and implementation and project management solutions for eBusiness enablement, systems integration, package applications, CRM, ERP and data warehousing. We are excited about the additional capabilities and client base that Ballantyne and System 5 bring to Pomeroy.”
Ballantyne and System 5’s client base includes Fortune 1000 companies and selected technology start-ups. The combined client list includes industry leaders such as Caterpillar, Nortel Networks, Siemens, Philips, Husqvarna, Pirelli, BellSouth, Sara Lee, Ducks Unlimited, Sea Land, St. Judes Children’s Hospital, Royal & Sunalliance, Glenayre and CSX Corporation. Dale Tweedy, President of System 5, said: “The synergies of combining System 5, Ballantyne and Pomeroy will create a unified technology business. This combination will not only offer our customers a broad spectrum of services and technologies but it will provide cross selling opportunities for Pomeroy.”
Mark DeMeo, CEO of Ballantyne, commented on the transaction: “The combination of Ballantyne and System 5 is very strong – our vision, talents, focus and culture are complementary. Together with Pomeroy, we can offer best-in-class infrastructure design and implementation, eBusiness technology expertise and proven methodologies,” added DeMeo.
About Pomeroy Computer Resources
The Pomeroy Companies provide complete IT integration solutions including comprehensive services, procurement and financial offerings. While the Companies have clientele across a broad spectrum of industries, the major markets served are state and local government and education, insurance/finance and healthcare organizations nationwide. The Pomeroy Companies employ approximately 1,800 individuals, more than half of whom are technical personnel, and maintain 30 regional facilities in Alabama, Florida, Georgia, Indiana, Iowa, Kentucky, Michigan, Minnesota, North Carolina, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas and West Virginia. For the year ended January 5, 2001, the Companies reported revenues of $925 million.
About Ballantyne Consulting Group
Ballantyne, headquartered in Charlotte, NC, provides eBusiness (mostly B2B) and packaged implementation solutions, delivering a full spectrum of solutions, from strategic planning to project management. Ballantyne has multiple offices in the region and employs approximately 70 high-caliber consultants. Ballantyne recently won the Blue Diamond Award for their significant growth and in recognition of their technological superiority.
About System 5 Technologies
System 5, headquartered in Charlotte, NC, provides corporations the ability to implement IT/IS strategies quickly and successfully. System 5 is an Oracle and EMC solution provider and re-seller. The Company has 23 employees in 7 Southeastern US locations. Deloitte & Touche and KPMG have recognized the Company as one of the fastest growing technology companies in the Southeast.