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There were 40 acquisitions last year where one dealer bought another, with the group commonly called “mega dealers” responsible for 19 of them. We’ve seen 15 similar acquisitions in the first half of 2023, with five of them stemming from the megas. The simple analysis is that dealer-dealer acquisitions have not happened as often as they did on average in 2022.
The more interesting analysis is that a higher percentage of this year’s acquisitions have been made by the mass of dealers with less than $100 million in annual revenue. For someone like me who likes smaller-scale stories that still see bigger ramifications, this stat makes me smile. And while I tend to focus on said dealer-buying-dealer acquisitions, I decided to paint outside my usual lines here…
WiZiX Acquires TABS Accounts in Reno and Lake Tahoe Areas (March 10)
There was a lot of curiosity from analysts and the media when this move was announced. Was Toshiba America Business Solutions (TABS) selling its direct operations? Was this part of something bigger? Of course, hindsight is 20/20 given what happened next. But when you put everything together, you land on an acquisition worthy of this list.
“The reality is that it was a small, strategic transaction that worked well for Toshiba, WiZiX, and the local customer base,” said Gary Johnson, President of WiZiX Technology Group. “WiZiX was already opening a branch in Reno, and Toshiba was there but on a somewhat remote basis. Having us take over the territory provides a local presence as well as a springboard to invest and grow in that marketplace.”
EDGE Business Systems Doubles Down on Mailing Systems (March 15)
Keypoint Intelligence’s most recent consumer marketing research shows that nearly a quarter of consumers under the age of 35 believe that printed marketing pieces prove you are more serious about winning or keeping their business. That stat is not insignificant given the importance of what it’s speaking to—and could speak to why EDGE, already a mailing systems provider, bought Mailing Systems of Georgia.
“A goal at EDGE is to continue expansion through acquisition of like-minded technology organizations, while strengthening our product portfolio to loyal customers,” said Rich Simons, EDGE Business Systems Cofounder and Partner. “Mailing Systems is a solution-minded organization that complements the EDGE brand well in delivering customized solutions backed by superior service.”
DME Acquires Columbus Office of Applied Laser Technologies (April 20)
Donnellon McCarthy Enterprises (DME) wants to expand into larger metropolitan areas, as the company’s Director of Managed Services Luke Ubelhor recently told me. It doesn’t take a genius to figure out that big companies like to be in big cities, so expanding its footprint in the capital region of Ohio makes all the sense in the world, especially when more strength is added to already strong service offerings.
“With Fortune 500 companies like L Brands and Nationwide, Columbus is a vibrant and growing business hub,” said Jim George, President of Donnellon McCarthy Enterprises. “The acquisition of Applied Laser Technologies broadens our footprint in the city and its surrounding areas. What’s more, we are happy to report that the transition has been seamless for ALT clients.”
Keypoint Intelligence Opinion
Acquisitions come in all shapes and sizes. Consolidation will continue like clockwork—basically no different than the sun rising and setting. While dealer acquisitions have slowed a little, will spending pick up or will the more conservative trend carry on? We are also marching headlong into the prime phase of the presidential election cycle, which can sometimes be a dicey time fiscally speaking.
Looking at a list of dealer acquisitions and creating a blog out of it is one thing. The far more enlightening story is the one that dissects an acquisition years after it happened to see what really happened.
Let’s see what happens.
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