Konica Minolta has acquired managed IT services provider All Covered, taking a major step in its cultural and strategic shift from hardware to services. All Covered targets the small and midsize business (SMB) market and has revenues of roughly $60 million.
"Moving into the managed IT space really is a culmination of the direction our company is trying to head, " said Konica Minolta chief operating officer Rick Taylor. "That's a direction that allows us to really help customers with every aspect of the information technology systems in their offices."
Taylor cited All Covered's reputation in the managed IT services industry as a key driver behind the deal, noting its high rankings in organic Google search results as an indicator of brand strength. He said that Konica Minolta values the market for managed IT services for SMBs at roughly $18 billion annually, but that it is highly fragmented and lacks national vendors like Geek Squad and other firms that target consumers. All Covered's current operations span 21 offices. It's reach will expand considerably with newfound access to Konica Minolta's network of direct and dealer sales channels.
"What's exciting and visionary here is that we're not aware of anyone of the scale and size of Konica Minolta playing in this space," said Todd Croteau, president of All Covered. "This is really cutting edge."
Both the All Covered brand and its management team will be retained, with the company operating as a wholly owned subsidiary of Konica Minolta. Financial terms of the acquisition were not disclosed.