Datalink Acquires Cross Telecom Networking Team

Datalink (DTLK), a provider of data center infrastructure, solutions and services, announced it has acquired Minneapolis-based Cross Telecom’s networking solutions organization. This team brings expertise in enterprise-data networking, a key skill set needed when helping organizations virtualize their data centers, said the company.

“This is an exciting opportunity for Datalink to expand the value we deliver to our customers,” said Paul Lidsky, president and CEO of Datalink. “Companies continue to move aggressively to consolidate their server, storage and networking infrastructures. Virtualization technology is accelerating this trend, and it delivers tremendous efficiency and productivity gains for customers.”

With the convergence of storage and networking, this new team’s capabilities will add to Datalink’s expertise in designing, implementing and managing sophisticated storage, backup and recovery infrastructures. Historically, Fiber Channel and Ethernet were distinct infrastructures provided by separate networking vendors. Going forward, Ethernet will play a central role in consolidated data center networks. By acquiring the Cross networking solutions team, Datalink is able to help customers build the consolidated networks they need to support growing their virtual data center infrastructures.

The team has extensive experience designing, deploying and supporting reliable, cost-effective and secure LAN, WAN and data center infrastructure and security solutions for customers ranging from Fortune 100 companies to small businesses. As a result of this acquisition, Datalink is now a Cisco Silver Certified Partner.

Datalink will immediately assume responsibility for supporting the Cross networking customers. Over the coming weeks, Cross’ sales force will introduce Datalink to customers who need storage and data center virtualization. Over time, the company believes this will provide incremental growth to Datalink.

The transaction closed Oct. 1, 2009, and was structured as an asset purchase. The purchase price paid at closing was $2 million. Under terms of the purchase agreement, Datalink and Cross entered into a services agreement under which Cross agreed to purchase at least $1.8 million of networking products and services from Datalink over the next three years.

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