CARY, N.C. and NEW YORK, Oct. 5, 2012 /PRNewswire/ -- StraTech, a brand of Midas Medici Group Holdings, Inc. (OTCQX: MMED), today announced the closing of the transaction to sell the majority of its assets. Both StraTech and Datalink focus on optimizing enterprise data centers and IT infrastructure through common product and services portfolios designed to help customers increase business agility.
Datalink purchased StraTech for a consideration of $20.25 million including the issuance of 269,802 shares of Datalink common stock, and subject to certain adjustments based on acquired assets and liabilities. Datalink assumed approximately $20.8 million of StraTech's liabilities and acquired approximately $16.0 million of assets. As part of the transaction, Midas Medici also retained Stratech's real-estate portfolio asset valued at $5.0 million and entered into a long term lease with Datalink for part of the available square footage. The closing of this transaction is subject to a final audit expected to be performed within the next 90-120 days.
"We are pleased with the strategic sale of our StraTech business," said Nana Baffour, CEO and co-founder of Midas Medici and executive chairman of StraTech. "For the past two years, we have successfully grown StraTech and attracted several marquee customers to the organization, which Datalink considers to be valuable assets. We were able to do this in the midst of a severe economic recession as well as the significant adverse impact of SUN's acquisition by Oracle. I am particularly proud of our leadership team and the talented employees at StraTech who made this possible, as well as the great customers that trusted us to serve them over the years."
"We have always strived to have the best possible environment to serve our customers and provide our employees with meaningful career opportunities," said StraTech President Bob McCarthy. "Combining our assets with Datalink achieves this goal while enabling the business to maintain the excellent growth it has experienced over the past two years. I am confident our customers will see great value in the combination of StraTech and Datalink, and that our employees will continue to prosper. I would also like to thank all of our employees for their contributions over the years to help make this transaction possible."
"StraTech has built a strong data center-focused business that closely aligns with our products, services, and approach to helping companies optimize their data center operations," said Paul Lidsky, president and CEO, Datalink. "These synergies, along with StraTech's solid customer base and large team of knowledgeable field personnel, will help us expand our regional and national footprint as we continue to help organizations take advantage of today's transformational data center technologies."
Datalink, based in Minneapolis, MN, will continue operations of most of StraTech services and offerings. Datalink extended full-time positions to approximately 80% of StraTech's ninety-one employees. An additional ten employees will work a transition services contract. Transition services positions, primarily in accounting and internal IT, are redundant with current Datalink employees, and will be eliminated after the transition period.
StraTech is a national provider of Data Center Services, IT Consulting, Infrastructure, and Support Services. A brand of Midas Medici Group Holdings, Inc., StraTech (www.stratech.com) has over 20 years of expertise helping customers build, protect, manage, and support mission critical data center infrastructures.
About Midas Medici
Midas Medici Group Holdings, Inc. (OTCQX:MMED) is a managed IT services and infrastructure company that supplies mid-sized and select enterprises and institutions with leading-edge IT. Across its Cimcorp, StraTech and UtiliPoint brands, Midas (www.midasmedici.com) works with its customers by optimizing IT and data center investments, streamlining communications between departments, reducing costs and preventing data loss, all while maximizing productivity.
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