Systems integrator Convergint Technologies LLC, headquartered in Schaumburg, Ill., announced recently that it had entered into a partnership with private equity firm KRG Capital Partners in an effort to increase its organic growth and also pursue acquisitions to help expand the company’s geographic footprint. We got the inside scoop on this partnership and the company’s continued success in the systems integration landscape.
Growth hasn’t been a problem for Convergint Technologies, which keeps its focus on exceptional service, tailored to the customer. “We have been growing since our inception 11 years ago with no down years even through the recession,” said Dan Moceri, Convergint Technologies CEO and co-founder. “We expect our growth over the next four to five years to average in the high teens to low twenties. We foresee some of that coming from acquisitions but we will keep up our proven strategy of organic growth.”
While the terms of the recent private transaction with KRG Capital Partners were not disclosed, Moceri said the company has always had financial partners, even going back to its inception in 2001. “Some have been strategic, some private equity and some traditional bank debt,” he continued. “KRG brings more of the private equity focus. More importantly, they have a similar appetite as we have always had and that is profitable growth. Along with their additional capital, they also bring an outside perspective on growing companies. We are excited to work with them to grow Convergint even faster than we have to this point.”
And grow they will if the past is any indication. The company ranked in the top 10 in SD&I magazine’s list of fastest growing systems integrators, Fast50 (more info, www.securityinfowatch.com/10656733), and also, number 37 in a ranking released in June 2012 by Crain’s Chicago Business. How do they do it? “Our differentiator has always been service and we expect that to be even truer in the future,” Moceri said.
Physical and logical focus
Organic growth has been good to Convergint. Today some 98 percent of its revenues come from greenfield operations. While the company may fill in some geographic coverage through acquisitions to locally service its customers better they also look for potential acquisitions that expand their integration capabilities more towards the logical side of our client’s business.
Superior integration is also where the company excels. “We are a high level systems integrator,” Moceri continued. “As a result, we see the opportunity to solve more of our client’s enterprise business problems. This requires an even higher level of integration as we integrate the physical side of the business more into the business enterprise side. This allows our customers to operate their business more efficiently, meet regulatory requirements, and save operating costs. We see technology as an enabler to achieve these goals not the driver of the solution. Our focus is on providing the appropriate technology along with high level services that deliver more value to our clients.”