Category: Managed Service Provider

ECi Software Acquired by Apax Partners

Jeff Hayes
Aug 15, 2017

Apax Partners LLP announced it has agreed to acquire ECi Software Solutions (Fort Worth, TX) a provider of enterprise resource planning software solutions for small and medium-sized companies in the distribution, field services, building and construction, and manufacturing industries. The sellers are The Carlyle Group, a global asset management and private-equity firm which acquired ECi in March of 2014, and Level Equity. No financial terms were disclosed, but clearly the timing and price were right for the sellers.ECi Logo

Apax is a leading private equity firm headquartered in London and New York that primarily invests in companies across four global sectors of Tech and Telco, Services, Healthcare, and Consumer. The company has investments in 23 companies in the Tech and Telco sector including Exact Software (Delft, The Netherlands), a provider of subscription-based shop management, ERP, accounting, and CRM software for small to mid-size manufacturing companies. Read more »

Kyocera Hits the Accelerate Button with DataBank Acquisition

Jeff Hayes
Aug 4, 2017

Kyocera Hits the Accelerate Button with DataBank Acquisition

Synergies that go “Beyond the Document” 

 kyo logo
databank logo

KYOCERA announced they have acquired DataBank IMX, a nation-wide provider of distributed capture and business process automation services and enterprise content management (ECM) solutions.  Specific terms of the deal were not disclosed, but although KYOCERA Document Solutions Inc. acquired DataBank, operationally DataBank will report to KYOCERA Document Solutions America, Inc.  This deal is an important move by Kyocera, which typically has focused on organic growth initiatives, and has the potential to create significant new revenue streams and further strengthen their close relationships with independent office equipment dealers.  After meeting with Norihiko Ina, President of KYOCERA Document Solutions Inc., and Chuck Bauer, CEO of DataBank, I had the opportunity of learning first-hand of this latest industry acquisition.

Some Background:  Kyocera’s Total Document Solutions (TDS) Strategy

During their April 18, 2017 Business Technology Conference, the President and CEO of KYOCERA Document Solutions America, Yukio Ikeda, explained that Kyocera’s alliance with DataBank, announced on 9/13/16, was critical to the next phase in their Total Document Solutions (TDS) strategy. Mr. Ikeda described this next phase as TDS 2.0, offering Business Process Improvement, Business Process Outsourcing and IT Services as expanded Kyocera offerings. In his presentation, he went on to explain that all business processes, not just document-related ones could benefit from these additional services.  He announced that within FY18, their North American dealers would be able to “offer business process improvement services through Kyocera and DataBank’s team of BPI specialists.” This acquisition confirms that Kyocera has executed on this approach by fully incorporating the services provided by DataBank – now a wholly owned entity.

Why DataBank?

DataBank claims to be the single largest North American reseller of Hyland OnBase with over 800 ECM installations across the country. The company offers solutions built on a variety of leading document capture, enterprise content management, and business process automation tools.

Kyocera has been focusing on distributed capture and document management solutions for Hyland OnBase and Microsoft Sharepoint customers in document/workflow intensive industries including healthcare, education, and legal. DataBank enables Kyocera to accelerate and deepen its offerings in these areas, as well as provide additional direct sales and professional services capabilities. A quick thumbnail on DataBank:

  • Founded in 1991 with headquarters in King of Prussia, PA
  • Variety of solutions based on Hyland OnBase and Microsoft Sharepoint
  • Extensive professional services for re-designing complex document and data-intensive business processes and implementing and managing automated and outsourced solutions
  • Over 620 employees across 7 Imaging Centers and 6 sales offices in the U.S.
  • Approximately 65% of revenue from healthcare and public services accounts

Other DataBank technology partners include:

  • Hyland OnBase (DataBank is a platinum reseller in North America)
  • Microsoft Sharepoint
  • Anydoc, AvePoint, DocuSign, Hyperfish, K2 Nintex
  • Leading scanner & mailing system vendors

DataBank solutions also connect with a variety of MFPs from other vendors, and Kyocera has indicated that they will not disrupt the support offered to those customers, but will look to shift customers to Kyocera-based devices and solutions wherever possible.  Kyocera also believes they can more tightly integrate their devices with DataBank solutions as part of future product development.

Why Now?

Kyocera clearly sees solutions as integral to their business strategy and has been impressed with the DataBank management team and offerings. The company is focused on offering customers a new level of consultative expertise in simplifying complex workflows, managing mission-critical information, and optimizing business performance.  Kyocera has also been steadily building out their Total Document Solutions portfolio through internal development and industry partners, with nearly 50 software offerings focusing on distributed capture, data extraction, document management, device management, output management, and security.

Kyocera also has the financial resources to make a mid-sized acquisition, and has not been burdened with integrating previous acquisitions like some competing OEMs. The company has outperformed the industry recently with revenue up 104% over the previous year and has reported 8 consecutive years of growth.  With the steady economy, strong balance sheet, and a good partner in a strategic part of the market, Kyocera believes now is the time to make a move. 

Industry Impact

This acquisition doesn’t change the structure of the industry, but clearly indicates that Kyocera is committed for the long term. Keypoint Intelligence believe this move is important because it:

  • Signals Kyocera’s strategic direction further into the solutions business and enterprise accounts
  • Strengthens Kyocera’s position in important vertical markets (healthcare, government, legal)
  • Significantly expands Kyocera’s professional services capabilities
  • Creates a new services revenue stream around business process automation
  • Provides new opportunities (solutions) and capabilities (integration) for Kyocera dealers
  • Has long-term potential for Kyocera to expand within the U.S. and other regions

InfoTrends’ Opinion

Expansion and contraction has become common place in our industry, with Xerox and Lexmark recently divesting its solutions and service entities, and now with this acquisition by Kyocera – clearly vendors are trying to find ways to better serve the expanding needs of their customers for services that go beyond the document.  Acquisition is one way to accomplish this, and this recent course taken by Kyocera and DataBank, which began as a partnership a year ago, may have been a prudent one that could work to their mutual benefit.  During this past year, both companies have had a chance to familiarize themselves with their respective product and solution portfolios, as well as their corporate cultures. It is also likely that their sales channels have had a chance to work closely together, aligning resources and finding ways to combine forces to better serve their customers.  With this acquisition, it is anticipated that Kyocera will be able to continue on the path in offering expanded technologies and services to their customers, and realize phase 2.0 of their Total Document Solutions strategy.

Takeaways From the SPS Analyst Summit in Vietnam

David Stabel
Dec 15, 2016

Swiss Post Solutions (SPS) recently invited the analyst community to its Industry Analyst Symposium held in Vietnam on November 23-26. During this multi-day symposium, SPS’ senior management briefed analysts on the SPS business, its latest technology innovations, as well as on its Business Process Outsourcing (BPO) strategy. Analysts were also invited for site visits to both of its Vietnam offshore facilities in Ho Chi Minh City and Can Tho City. This blog post covers our takeaways from the event.

SPS

SPS Industry Analyst Symposium in Vietnam, Nov 23-26, 2016

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Xerox Announces Workflow Solutions Spanning a Variety of Vertical Areas

Anne Valaitis
May 19, 2016

Today Xerox announced a new set of workflow automation industry solutions in higher education, retail banking, and manufacturing; advancements in personal and office productivity capabilities; as well as ConnectKey innovations aimed at enhancing the managed print services (MPS) offering. Xerox also announced new revenue opportunities, tools, and operational processes for MPS channel partners.

On May 5th, Xerox held a call with industry analysts to discuss the new offerings prior to the official announcement. Mike Feldman (President of Large Enterprise Operations) highlighted the recent financial performance of the company’s document outsourcing business—which includes managed print services (including workflow automation) and centralized print services. Mike noted that in the first quarter, this business experienced one of its best quarters financially. The business, which generates approximately $3 billion in annual revenue, achieved 5.0% year-over-year growth on a constant currency basis. Half of this additional revenue occurred within the larger enterprise customer segment, while the other half stemmed from their indirect channel MPS business.

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Focus on Change and Opportunities at ITEX 2016

Barbara Richards and Brendan Morse
Mar 13, 2016

Waves of Change, Oceans of Opportunity
On March 7th through the 9th industry leaders, exhibitors and dealers gathered in sunny Ft. Lauderdale, Florida at the Broward County Convention Center for the ITEX 2016 National Conference and Expo. The show’s theme “Waves of Change, Oceans of Opportunity” was indicative of the expanded role of portfolio diversification and business operations transformation is playing within our industry. ITEX 2016 Pic

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Why Aren’t You a Member of the Business Technology Association? BTA Celebrates 90 Years of Dealers Helping Dealers!!!

David Ramos
Jan 6, 2016

We shall start where all of the great journeys throughout history start, at the very beginning.  It was August of 1926 and a group of independent typewriter dealers…What is a typewriter? Google it Millennials, I don’t have time to draw you a picture. Where was I?  Oh yes…

90Yearslogo

It was August of 1926 and a group of independent typewriter dealers gathered in Kansas City, Missouri, to form an association that would one day become the Business Technology Association.  By 1933, the Association had grown so much that it was decided a name change was needed. The National Association of Typewriter Dealers became the National Typewriter and Office Machine Dealers Association (NTOMDA), a decade later in 1943; it became the National Office Machine Dealers Association (NOMDA).  Fun fact, new products announced in the September issue of the NOMDA NEWS in 1948 included such items as:

  • The Tape Recorder — a compact, magnetic tape recording and playback machine designed for non-professional use.
  • The Wire Recorder — a new, portable, low-priced model. The combination phonograph/wire recorder reproducer claimed to have 12 essential features of sound reproduction.
  • The Photo Copy Duplicator — designed to produce letter- and legal-sized exact facsimiles of anything written, typed, printed, drawn or photographed in a matter of minutes. Claimed to produce more than 30 finished copies an hour at about five cents per copy. Portable. Had a self-contained darkroom.

Fast forward to present day, the Business Technology Association (BTA), led by Executive Director Brent Hoskins and a Board of Directors made up of independent dealers/entrepreneurs, serves office technology dealerships, resellers, manufacturers, distributors and service companies. Its core members — office technology companies — consult, provide services such as managed print services, managed IT services and sell hardware, software and supplies with the primary goal of helping businesses optimize business information workflow. Through the association’s various educational programs, information, research, legal services, publications and guidance, BTA member dealerships are positioned to be the premier source of the office technology used by businesses throughout the United States every day.  Bottom line, this association is about dealers helping dealers.

National Typewriter and Office Machine Dealers Association August 20, 1928, Cleveland, Ohio

National Typewriter and Office Machine Dealers Association August 20, 1928, Cleveland, Ohio

So, if you’re reading this and you’re not a member, my question is: Why Not?!  This is seriously what they call a “no-brainer” because for a measly $430 a year…hold on, let me start this part again.

This is seriously what they call a “no-brainer” for only $1.18 A DAY you have access to the following (imagine I am saying this with the voice of Don Pardo):

  • Legal Services – Led by the esteemed Bob Goldberg (he doesn’t even make me refer to him as esteemed, I do it out of the respect I have for his contributions to the BTA and our industry)
  • Free Publications & Online Resources – Like Office Technology Magazine
  • Channel Trends & Statistics – Including our very own InfoTrends Dealer Vertical Market Opportunity Analysis (yes, it’s a shameless plug, sue me after you become a member and have access to Bob Goldberg’s legal services)
  • Business Support Services – Including our very own InfoTrends Ask the Analyst service (alright, alright, that will be my last shameless plug)
  • Discount Programs
  • Insurance Programs
  • Education
  • BTA Scholarships – These scholarships are awarded to children of dealers & the children of their full-time employees.
  • BTA Navigator Program
  • Volume Purchasing Agreements

In addition to all of these fabulous benefits, the BTA holds five District Events per year (I know I said no more shameless plugs but this one isn’t about me, thus it doesn’t qualify as shameless), in the West, East, Southeast (traditionally one in first quarter and the annual Fall Colors event in North Carolina) and the Mid-America event. This year the Mid-America event will be held in BTA’s home city of Kansas City, Missouri, on June 8th thru June 10th to celebrate the association’s 90th Anniversary. These events feature industry leaders, networking opportunities, educational sessions and opportunities for exhibitors to meet one-on-one with attendees.

So, let’s go back to the beginning.  Founded in 1926…let that soak in for a moment people…founded in 1926!!!  Another fun fact, did you know that of the Fortune 500 firms in 1955 vs. 2014; 88% are gone?  Gone people, gone!  My Peeps at BTA have been diligently serving the independent dealer community since 1926!!!  And…AND…they all still look great!  Valerie, Teresa, Mary and Elizabeth, they don’t look a day over 30!  Brent and Brian…well, let’s just say they look great for 90 and we’ll leave it at that. :)

If you are already a member of the BTA you know first-hand all of the great work this group of individuals on the staff do for you on a daily, weekly and monthly basis and the contribution made by the association to our industry throughout its proud history.  If you are not a member, pick up the phone or email this man, Brian K. Smith, listed below and join today!  I promise you, if you invest the time to maximize even a fraction of the benefits I listed, it’s worth every penny.  And again, the pennies, work out to be like $1.18 a day!

Brian K. Smith – Membership Specialist

Business Technology Association

12411 Wornall Road, Ste. 200

Kansas City, Missouri 64145

800-505-2821

brian@bta.org

Congratulations to the entire staff at BTA and the countless volunteers, who are too many to name in this blog, for your many hours of hard work making the association successful.  A special shout out to Brent Hoskins for his dedication to and stewardship of the association.  Last fun fact, Brent also doubles as editor of Office Technology magazine.  So when he retires, the Board will have to hire two people to back-fill him; good luck with that. Brent is someone I both personally and professionally have a tremendous amount of respect for and is also someone I believe could be the nicest person on the planet. Much continued success to the Business Technology Association in 2016 and here’s to the next 90 years of dealers helping dealers!

 

 

The Dell-EMC Deal

Brendan Morse
Oct 20, 2015

The Deal
Though a little sticker-shock—to the order of $67 billion—is certainly in order, we should not be entirely surprised that Dell acquired EMC and its 81% stake in VMware. After all, it was an open secret that EMC was actively seeking buyers after the recent struggles with shareholders, and the failure to conclude a deal with HP. Though the acquisition includes a 60-day ‘go-shop’ provision that allows EMC to seek other bids with minimal penalty, competing bids seem unlikely. Dell has offered a substantial bid, and the number of other companies that would be seriously interested in acquiring EMC’s business is limited. Under the terms of the deal, EMC will go private as part of Dell, and VMware will remain a publically traded company.

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CSA Rebrands Business Services Division, Promises Focus on New Vertical Markets and Strengthened Core

Brendan Morse and Allison Correia
Feb 12, 2015

 

At its Second Anniversary Event, Canon Solutions America (CSA)unveiled the name change of its Business Services Division to Enterprise Managed Services Division (EMS). VP of Enterprise Services and Solutions, John Reilly, and VP of Managed Services, Valerie Belli, gave the presentation detailing the rebranded division.

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