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Digital Planet Buys Compass Communications

By Craig Galbraith
February 12, 2014 - News
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**Editor's Note: Please click here for a recap of the biggest channel-impacting mergers in Q4 2013.**

Digital Planet, a business communications professional services firm, has acquired Phoenix-based Compass Communications. Financial terms of the deal weren't disclosed.

To support the acquisition and to service Compass' client base, Digital Planet will open a new branch office in the Phoenix area. The company will move some staff to Arizona. Digital Planet intends to retain a majority of the existing Compass Communications staff.

To continue its national expansion, Digital Planet says it is actively pursuing and purchasing VARs, traditional telecom agencies, IT companies and other communications-technology companies that lack the ability or desire to become a single-source communications technology entity.

“As communications technology moves up the OSI model, you lose the need for specialization. Communications platforms today are device and access bandwidth agnostic, which makes the traditional VAR and vendor obsolete. Many folks are out peddling speeds and feeds, but lack the knowledge and depth to offer real solutions," said Shawn Schmidt, president of Minnesota-based Digital Planet. “I have seen numerous examples of traditional equipment VAR’s that have not evolved, and the traditional telecom agencies and carrier direct sales forces that have failed to embrace the change. This creates great opportunity for Digital Planet to acquire customers from these folks, either through direct competitive sales to their customers, or thru acquisition of the entire company."

Follow senior online managing editor @Craig_Galbraith on Twitter.

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