SWK paid $700,000 for Hightower and received that much from the annual maintenance income that produced gross margins in excess of 85 percent. "Our payback on that particular investment was measured in months, instead of years," Meller said. SWK is the only revenue-producing business of SilverSun. Meller also said SWK and SilverSun plan to aggressively pursue acquisitions of cloud companies, included those provide infrastructure, software, platform and database as a service offerings along with seeking application hosting companies. He noted that the company's managed services practice is strong and that is the area in which "we anticipate the most acquisitions." SWK will also continue to roll out Sage resellers in North America. "We anticipate doing it again and again," he says. While those businesses have low growth, SWK can leverage its more than 99-percent client retention rate and sale additional products to the customers of the resellers it buys.
Estimated reading time: 1 minute, 2 seconds
SUPPORT PAID FOR HIGHTOWER DEAL Featured
The purchase of the former Hightower by was paid for in the first 12 months by maintenance revenue from Hightower's applications, according to Mark Meller, CEO of SilverSun Technologies. Meller told listeners to the RetailInvestorConferences.com, conference earlier this month that Hightower, which was also a Sage reseller, had 13 applications with four of those that had "real traction in the market place."
Most Read
-
-
May 22 2017
-
Written by mark
-
-
-
May 22 2017
-
Written by BobWScott
-
-
-
May 19 2021
-
Written by BobWScott
-
-
-
May 25 2016
-
Written by mark
-