On January 21, 2014, Ricoh announced the acquisition of Best Buy subsidiary mindSHIFT Technologies, a managed IT service provider, for an undisclosed amount. Architect Partners initiated this transaction and was the exclusive financial advisor to Ricoh.
mindSHIFT provides cloud, data center and professional IT services to more than 6,900 SMB and enterprise clients in 12 markets throughout the United States. mindSHIFT’s cloud services include cloud desktop, server, applications, VoIP and mobile device management. The company’s data center services include managed hosting, web hosting, colocation and disaster recovery. The company provides IT services for SMBs in verticals such as legal, healthcare, financial services, non-profit and education.
mindSHIFT is one of the top managed service providers in the United States, experiencing 28% client growth in the last two years. In June 2012, mindSHIFT acquired Texas-based White Glove Technologies, a competitor with 105 employees that specializes in managed IT services in similar verticals. mindSHIFT is consistently a top five-ranked company in MSPmentor’s 501 Survey and is also recognized on the Top 100 Cloud Services Provider (CSP) list.
mindSHIFT, headquartered in Waltham, MA, will continue to operate under its current name and management team. The company has 650 employees with offices in Boston, Chicago, Long Island, New York City, Minneapolis, Morrisville, Philadelphia, Washington D.C., Austin, Houston, San Antonio and Dallas. Mona Abutaleb will continue as mindSHIFT’s President and CEO.
mindSHIFT was acquired by Best Buy in late 2011 to provide a layer of IT services above their Geek Squad consumer/SMB offerings. As Best Buy management and strategy changed, mindSHIFT no longer was strategic.
mindSHIFT’s biggest gap was in sales and marketing. Given Ricoh’s large customer base and existing field sales and service organization, this was a natural fit.
This was a competitive transaction, highlighting the attractiveness of managed services both to major service providers and to private equity investors.
Ricoh is seeking to transition into a services-led company, diversifying from its legacy as a product-centric company. With the acquisition of mindSHIFT, Ricoh will add attractive, high margin IT services that it can offer to its SMB client base and roll out to its broad dealer network.