Sanjeev Verma (AGC Networks)
A Singapore-based subsidiary of AGC Networks has signed an agreement to acquire Black Box, in a deal worth an estimated US$16.4 million.
Terms of the transaction - billed as a “merger agreement” - will see the creation of a global technology solutions provider, with increased presence across six continents.
AGC in Singapore is a system integrator and networking reseller, specialising in data centre, security and unified communications solutions.
Meanwhile, Black Box operates as a digital solutions provider with expertise across the design, build and management of IT infrastructure.
Specifically, AGC will acquire all the outstanding shares of Black Box for US$1.08 per share in cash, with the agreement set to close prior to the end of the 2018.
“We have known Black Box for many years and believe that its skilled teams and strong client relations with world-class enterprises and partners will allow us to better serve our global clients,” said Sanjeev Verma, executive director and CEO of AGC Networks.
“The merger of our two companies will create a unique organisation that has the scale to deliver world-wide technical solutions to the largest organisations.”
According to Verma, the combined entity will provide a “substantial increase” in AGC’s presence and offerings in North America.
In addition, the acquisition is expected to add over $600 million in annual revenue for AGC and approximately 3,000 team members serving clients worldwide.
“We were looking for a partner that could provide us with the resources to grow our services and products businesses in a way that benefitted clients and employees,” added Joel Trammell, CEO of Black Box.
“As we visited in depth with the AGC team, it became obvious that the fit was very strong and that the combination would make our company more exceptional.
“I look forward to working with Sanjeev and his team to build a world class global technology services company.”
AGC has strong presence in India, the Middle East and Pacific Rim to complement Black Box’s services focus in the Americas and Europe, while also enhancing the presence in other global markets.
Both companies provide full managed services capabilities in unified communications and collaboration, cloud, data centre and edge technologies.
AGC will also add its expertise in digital applications and cyber security to Black Box’s infrastructure and mobility background while the Black Box products business will continue to offer its full portfolio of products directly and through channel partners.
