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So far this year in the United States, 12 acquisitions have been announced where one dealer bought another, with mega dealers completing six. Compared to the first half of 2023, those figures were 16 and 5, respectively, so we’re down some here and we’re slightly ahead there (research as of June 5, 2024).
The acquisitions we’ve selected for this mini list were all announced in January. Not sure if you believe in coincidence or if you like irony or symmetry…and no, while my favorite month is January, that had nothing to do with it either—just the way it worked out, I swear.
UBEO Fortifies Beantown Share, Acquires Bay Copy (January 4)
About three years ago, the Texas-based and Texas-sized mega UBEO bought a dealer on the North Shore of Boston, which broadened its already broadening territory. The Bay Copy move shows that the company is doubling down on the market but, this time, with a base on the South Shore. Massachusetts is a long way from The Lone Star State, but we all know the mega dealers like to connect the dots no matter how much real estate is between them.
“When we look at acquisitions, we are focused mainly on culture but also strategic location,” said Ronnie Hay, Director of Marketing at UBEO. “With Bay Copy, not only is it a cultural fit with a great reputation but we strategically expanded in the Boston market, too. Many companies have moved away from brick and mortar—UBEO sees this as an advantage. In these times of virtual selling, we still believe in the power of staying local and always cultivate exceptional customer experience. That is driven by service, and we need that proximity to our customers to ensure a UBEO level of service.”
Doceo Continues to Be Active, Adds Document Essentials (January 17)
With a fourth acquisition since 2020 (all south of its headquarters in York, PA), Doceo has been an active dealer in the $20-$30 million range from the start of the pandemic. Here, through Document Essentials, the company picked up the Baltimore metro area. For an operation that was around $10 million before COVID-19 arrived, it’s clear that Doceo has not only a consistent acquisition strategy but the follow through to grow business inside the new assets, too.
“We are delighted to welcome Document Essentials into the Doceo family,” said John Lewis, CEO of Doceo. “Their long-standing reputation for impeccable service is a perfect fit for Doceo’s service-first culture. This acquisition further strengthens our presence in the greater Baltimore Market. It’s a market filled with opportunity given the recent ownership changes at Advance Business Systems and Centric.”
DEX Imaging Makes Two Moves, Solidifies Western Presence (January 24)
I know, the headline of this piece specifies “3 Intriguing Acquisitions”, but I’m pulling a not-so-fast one by combining two into one due to geography and size. Valley Office Systems is in Idaho, 360 Office Solutions is in Montana, and both reside in the $20-$50 million range in our Channel Mapping Tool. DEX Imaging is headquartered in Florida. Again, megas are just chewing up ground.
Aside from very brief releases, not much beyond what we already know of these deals is known. Ultimately, what’s interesting with the acquisitions is more so what happened three months later, as the dealers were not quite small potatoes: Gamut Capital Management as well as Dan Doyle Sr. and Jr. bought DEX from Staples, which had bought DEX from the Doyles in 2019. Um, yeah.
Keypoint Intelligence Opinion
All three—sorry, four—acquisitions could very well have closed in 2023 but they weren’t announced until after the new year. Take those out of 2024 and put them in 2023, and suddenly you have a much different story to tell (delaying announcements is nothing new, happens all the time). Based on what I’ve heard from various people in various forums dating back to Q4 of last year, some dealers have had acquisitions lined up but are waiting for interest rates to decrease—your standard “What’s Your Magic Number?” game.
These are all developing stories. It’s about evolution. Let’s see where they land.
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Channel Strategy Session: 3 Intriguing Acquisitions by Dealers So Far in 2023
