Datalink Buys Midwave

Datalink completes the purchase of Minneapolis-based Midwave

October 3, 2011

2 Min Read

MINNEAPOLIS, Minn. -- Datalink (NASDAQ: DTLK), a leading provider of data center infrastructure and services, today announced that it 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.

With the addition of Midwave, Datalink is positioned to close 2011 with an anticipated annualized run rate of more than $400 million and a workforce of over 400 employees. Midwave’s consulting and managed services business, along with its technology resale business, represents an estimated $65 million in annualized revenue and a base of over 250 customers.

“Our expanded footprint in the Twin Cities makes us the dominant data center services and infrastructure provider in the region,” said Paul Lidsky, President and CEO, Datalink. “This acquisition doubles our Cisco technology and services revenues, expands our managed services portfolio with the addition of a data center infrastructure monitoring service, adds an established security practice including product, services and consulting and doubles the size of our consulting services team. From our consultative approach and elite professional services teams to our robust portfolio and our customer-centric focus, we believe combining Datalink and Midwave is a tremendous opportunity for our customers, partners, employees, and stockholders.”

Datalink Corp. (Nasdaq: DTLK)

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