PSNI executive director Chris Miller calls the deal “unique” and “an opportunity for the industry.” Unlike many acquisitions, Miller doesn’t see a weak link on either end of this deal.
“This is a deal where people will look back and say it was done right,” he says. “Usually, you see a dominant, strong player acquire one that’s not as strong. In this case, both companies have incredibly good reputations. They may be two of the most financially sound, well-run organizations in the industry.
“Companies are always looking for exit strategies and ways to prepare their companies for the next generation,” he says.
“Usually, you see a dominant, strong player acquire one that’s not as strong. In this case, both companies have incredibly good reputations. They may be two of the most financially sound, well-run organizations in the industry,” says PSNI’s Chris Miller.
The acquisition is going to “continue to grow the energy and the excitement we’ve been feeling,” says Landrum. “It’s a great win for all employees.” Landrum sees opportunities for all 475 TI employees in the new setup, noting “very little overlap” with Diversified staffs because the companies have worked largely in different vertical markets.
“We want people to continue doing the job they’re doing today,” says Landrum.
D’Alessandro agrees, saying the combining of the two companies makes the new company stronger than the sum of its parts. He’s been describing it to people as part of the tour of offices as “one plus one equals three.”
Creating an Industry Leader
Diversified has made its bones in digital signage, broadcast and IPTV among other areas, while Technical Innovation has been strong in command and control and unified communications, to name a few.
“We’re both on a growth path and the deal was done for that reason,” he says. “There are very few clients we both work for and we’ve really never competed against each other.”
D’Alessandro downplays talk of this deal being the largest in the industry since the AVI-SPL merger created the industry’s behemoth. He says he wasn’t looking to create a company to compete with AVI-SPL or other large integration firms.
“My view over the past 25 years is about creating the best company,” he says. “It’s never been about being the biggest. Big gives our customers more reach, but it’s pretty low on the priority list for me.”
Miller sees the Diversified-TI merger as another case of the companies trying to meet their clients’ needs.
“Both are very driven by client satisfaction and by high employee engagement,” he says. “These are two of the industry’s best.” He expects it to take about nine to 12 months “to get everyone on the same page,” which is typically how long major transactions take to settle in his experience.
It will be interesting to see how Diversified acquiring Technical Innovation affects the latter’s standing in PSNI. That will definitely be a topic of discussion next week in Austin at the PSNI Supersummit, says Miller.
“The PSNI model used to be based on where companies have offices, because that would tell us where they do business,” says Miller.
“While we still believe that’s true, even the smallest integrators are going wherever their clients go.” With that said, Miller knows it’s harder for groups like his and USAV Group to preserve territorial exclusivity today than it was in the past.
