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California firm pays $29M for IT operation
California-based Synoptek LLC has acquired EarthLink Business LLC's information technology services division-including its site in Perinton- for $29 million.
EarthLink's IT Services division consists of four offices: Pyinton, San Diego, Marlborough, Mass., and Saint John, New Brunswick, Canada. The deal af- D,OWtt *ech''ol09y fects approximately 210 employees- all of whom have transitioned to Synoptek, including roughly 40 people in the Rochester area.
Officials said the company will grow the Rochester office based on business needs in 2016. At the close of the deal Synoptek had roughly 440 employees.
EarthLink's IT Services division generates sales of $37 million annualized run-rate revenue, according to the company. The division will now be known as Synoptek Elevate. The deal closed Feb. 1.
The opportunity had been on the radar of Synoptek-a global IT managed services provider- since April 2015. The deal helps the Irvine, Calif.-based company expand its eastern presence by utilizing the current data center at the Perinton site and by adding depth to its service offering.
"We do have a strategy to grow through acquisition in addition to growing organically so we are looking at businesses all the time. But we did come across EarthLink and we...