CBIZ Acquires Tri-Tek, Tripling Interactive Division's Revenue and Accelerating Growth

Strategic Insights -

CBIZ, a leading provider of outsourced business services, has announced the acquisition of Tri-Tek Information Systems, a private IT services firm that recorded revenue in excess of $30 million for 1998. The deal, expected to close subject to customary conditions, more than triples the historical annual revenue of CBIZ's information technology services division, CBIZ Interactive. This strategic acquisition will position CBIZ to capitalize on the rapidly growing market for network design, integration, and services, which is expected to reach $111 billion by 2001.

Key Takeaways:

  • CBIZ is acquiring Tri-Tek, a nationwide provider of network services and outsourced solutions, for an undisclosed amount.
  • The acquisition will triple the revenue of CBIZ's information technology services division, CBIZ Interactive.
  • Tri-Tek has 275 employees, including 14 sales representatives, serving a portfolio of clients including Dollar Rent-A-Car, Tyson Foods, and Edward Jones.
  • Tri-Tek's revenue has grown at a compound annual rate of over 40% since 1994, with revenue from network management services increasing 88% since 1996.
  • The company's renewal rate for multi-year service contracts exceeds 90%.
  • CBIZ's CBIZ Interactive division will integrate Tri-Tek's services, including network solutions, data storage services, and imaging solution services.
  • Mr. Fuchs, founder and President of Tri-Tek, will join CBIZ as a Vice President and President of CBIZ Network Solutions.

Statistics:

  • Tri-Tek's revenue in 1998 exceeded $30 million.
  • The market for network design, integration, and services is expected to reach $111 billion by 2001.
  • Tri-Tek's revenue has grown at a compound annual rate of 40% since 1994.
  • Revenue from Tri-Tek's network management services grew 88% between 1996 and 1998.
  • Tri-Tek's renewal rate for multi-year service contracts exceeds 90%.

Sources:

  • PR Newswire, "CBIZ to Acquire Tri-Tek Information Systems"
  • Dataquest, Market Research Report on Network Design, Integration, and Services
  • Tri-Tek Information Systems press releases and company website