The deal includes $12 million in cash, the assumption of $24 million in liabilities and an incentive payout of up to $10 million over the next year, depending on performance. CNT gets Articulent’s outstanding stock, $19 million in assets and Articulent offices in Massachusetts, New York,
New Jersey and Connecticut.
The acquisition will boost CNT’s storage services organization, which helps businesses manage their information systems.
Privately held Articulent was founded in 1989 as Berkshire Computer Products; it changed its name to Articulent in 2000. The company provides a range of storage-related services including consulting, systems implementation and managed services. CNT’s CFO Greg Barnum said the Hopkinton company will become the home of CNT’s managed services division.
Articulent has 120 employees while CNT has 750. Barnum said “very few” layoffs of Articulent workers would result as the company eliminates redundant positions.
“Articulent has an excellent reputation and valued expertise in the
storage solutions industry. This acquisition augments CNT’s strong services
offering, provides us with a greater presence in the managed services
marketplace and strengthens our ability to service East Coast customers,”
Tom Hudson, CNT’s chairman, president and CEO, said.
In the fiscal year ended Jan. 31, CNT had record revenues of $176.1 million, an increase of $50.1 million. Net income from continuing operations was $15.9 million, up 160 percent.