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Rochester Top 100: Acquisition broadens IT company's scope

Rochester Business Journal
May 20, 2016


"Becoming part of Accunet Solutions allows us to expand our services," said Mark Matheson, center, founder and president of DTG and now Accunet sales manager as well. With Matheson, from left, are Accunet employees Mark Northrup, Kurt Rudolph, Jeff Evarts and Mike Germano. (Photo by Kimberly McKinzie)

Distributed Technology Group LLC experienced a major change just before the New Year. The Perinton-based information storage provider was acquired by Accunet Solutions Inc., a Boston-based technology company, on Dec. 2.

The move strengthens business sectors and capabilities for both in their respective home regions, company leaders said.

“Becoming part of Accunet Solutions allows us to expand our services to include network, security and (data center),” said Mark Matheson, founder and president of DTG. “While Accunet does have national coverage, it is predominantly focused in New England. We can do resource sharing without a lot of geographical disparity.”

Alan Dumas, founder and president of Accunet, launched in 1997, said he had a major priority when he decided to add an acquisition strategy two years ago. DTG is his first acquisition because the company met that priority.

“We have been growing organically every year and the most difficult thing to do while continuing to grow is find good, qualified people. We don’t hire graduates out of college. We need people experienced in their field,” Dumas said. “DTG was a perfect fit as our first acquisition. They have senior people with a lot of experience in the industry. And their go-to market strategy is the same as ours.”

As a result of the acquisition, Accunet has a total of 36 employees.

DTG, which was founded in 2009, has eight employees locally, having grown by some two employees each year since 2012. Its revenues have grown steadily, increasing from $4.1 million in 2012 to $6.1 million in 2013 and $11.4 million in 2014.

“2015 would have been consistent with our historical performance, but we did not complete the fiscal year,” Matheson noted. “We would have met or exceeded 2014.”

With the integration some five months underway, both leaders feel they have passed beyond the point of any real challenges to a smooth transition.

“Typically a challenge in an acquisition is always cultural, but the risk to that more than four months in is extremely minimized. We’re so similar. It’s business as usual,” Matheson said.

Dumas agreed.

“Everything has aligned perfectly. Not only from a cultural standpoint, but they also partner with the biggest partners, same as ours,” he said.

Accunet is a gold-level partner with Cisco Systems Inc.

“To be a Cisco gold partner in Upstate New York is very powerful,” Matheson said.

DTG has a partnership with another major player: EMC Corp., a $20 billion IT provider that is being acquired by Dell Inc. for $67 billion in what has been called the largest technology acquisition in history, he noted. The deal is expected to close by October. EMC is based in Hopkinton, Mass.

Partnerships with vendors such as Cisco and EMC not only improve a company’s profile but expand service offerings and help open more doors.

“We have $100 (million) in revenues across Upstate New York and it’s all partner led,” said Robert Cady, executive sales manager at EMC. “The world’s changing. We’re asking all our customers to modernize and run off the cloud. Companies in Upstate are on the curve exiting the traditional and moving toward modernization.”

To guide companies through the transition, EMC needs people with the skillset to educate them, Cady said. He finds that talent through companies such as Accunet and DTG.

“We need scale, and we get that through our partners,” Cady said. “DTG can educate the customer, gauge their needs and then align them to the right services we can provide. Having that local presence is key.”

The partnerships also benefit EMC, Cady noted, since customers are not forced to turn to out-of-state or offshore service providers.

As DTG continues to assimilate into its new business with Accunet, Matheson sees a positive future.

“We are thrilled to become part of Accunet Solutions. From my perspective there has been very little challenge.”

The Rochester Top 100 program is presented by the Greater Rochester Chamber of Commerce and KPMG LLP. Launched in 1987, it recognizes the fastest-growing private companies in Greater Rochester. The 2016 Rochester Top 100 event will be held Nov. 3. For more information, go to greaterrochesterchamber.com.

Distributed Technology Group LLC
Technology value-added reseller
Year founded: 2009
Top executive: Mark Matheson, president
Current employment: 2
2015 ranking: 13
Headquarters: Perinton
Website: dtg.com

5/20/2016 (c) 2016 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or email service@rbj.net.


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