Datalink (DTLK) Completes $17.6M Acquisition of Midwave Corp.
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Datalink (Nasdaq: DTLK), has acquired substantially all of the assets, and selected liabilities, of Midwave Corporation.
Based in Minneapolis, Minn., Midwave is an IT services and solutions firm focused on optimizing the data centers and IT infrastructure of enterprise companies. Datalink and Midwave share common go-to-market strategies and product and services portfolios, as well as a track record of success helping organizations optimize the business value of IT.
Datalink purchased Midwave for $17.6 million, comprised of a cash payment of approximately $16.1 million and $1.5 million in Datalink common stock. Datalink will also assume approximately $11.0 million of current liabilities and acquire approximately $11.5 million in current assets and $500,000 in property and equipment.
Datalink anticipates that, based on its internal projections, the transaction will become accretive to net income within one quarter. The company plans to complete integration of the Midwave business within 90 days. Datalink will record a charge associated with the acquisition in the fourth quarter of 2011 of approximately $250,000, or $.01 per fully diluted share. The company expects cost synergies to take effect in the first quarter of 2012.
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Based in Minneapolis, Minn., Midwave is an IT services and solutions firm focused on optimizing the data centers and IT infrastructure of enterprise companies. Datalink and Midwave share common go-to-market strategies and product and services portfolios, as well as a track record of success helping organizations optimize the business value of IT.
Datalink purchased Midwave for $17.6 million, comprised of a cash payment of approximately $16.1 million and $1.5 million in Datalink common stock. Datalink will also assume approximately $11.0 million of current liabilities and acquire approximately $11.5 million in current assets and $500,000 in property and equipment.
Datalink anticipates that, based on its internal projections, the transaction will become accretive to net income within one quarter. The company plans to complete integration of the Midwave business within 90 days. Datalink will record a charge associated with the acquisition in the fourth quarter of 2011 of approximately $250,000, or $.01 per fully diluted share. The company expects cost synergies to take effect in the first quarter of 2012.
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