Perimeter Acquires US NetworksBy Pedro Pereira | Posted 2005-10-05 Email Print
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With the acquisition, Perimeter beefs up its managed services offerings and expands its customer base.Managed services provider Perimeter Internetworking has acquired US Networks Inc. in an effort to round out its offerings to customers.
Perimeter, of Milford, Conn., has built a 1,600-strong customer base for its managed services offerings with a heavy focus on security. With the acquisition of Raleigh, N.C.-based US Networks, the company adds network management and help desk support to its palette of services, said Perimeter CEO Brad Miller.
"If a client is already talking to you about network security, the client also wants to talk to you about things like network management and help desk," he said. "We're just providing clients a complete picture."
The US Networks purchase is the fifth in two years for Perimeter, which is banking on acquisitions to increase the breadth and depth of its services. This is desirable, Miller said, because clients want to rely on a single IT services provider as opposed to having to deal with multiple providers to service different needs.
"They don't want to deal with 28 vendors; they want to deal with one," he said. "Being a security provider first and foremost puts you in a good place to also provide other related managed services."
Miller said the acquisition adds about $3 million to the company's bottom line and boosts its customer base to 1,600.
The company last year had revenue of about $16 million, 89 percent of which came from security services and technology. Miller said the company is on track to reach $25 million this year.
Half of Perimeter's customers are in the banking industry, which is where the company got its start, Miller said. The remainder include health care and corporate clients.
Perimeter pioneered what it calls "Security in the Cloud," a subscription-based service that provides security to customers' networks by acting as a buffer between the networks and the Internet. By delivering security services this way, customers need not make large investments on security infrastructure, the company says.
Perimeter's services include intrusion and malicious code defense, secure e-mail and network access, automated regulatory compliance, and network services. The company now also will offer US Networks' e-mail content filtering service, which includes such features as adding disclaimers and scanning for proprietary information and unacceptable language.
US Networks also adds its Raleigh network operations center (NOC) to Perimeter's infrastructure. Perimeter already has locations in Fort Lauderdale, Fla., and Charlotte, N.C., in addition to its Milford headquarters.
"The merger with Perimeter enables us to put together a larger team of highly skilled engineers and offer a more comprehensive and robust suite of services," said Andy Cummins, founder and CEO of US Networks.
In addition to its acquisitions spree, Perimeter is widening its reach by offering its services as a package to VARs and integrators that want to get into managed services.
The company launched its partner initiative in August at the CompTIA Breakaway conference in Las Vegas. Through the program, VARs, integrators and service providers can pick and choose from the company's menu of services. Partners may opt for a hosted-services model or services delivered on-site at customer locations.
Miller said more acquisitions are in the works, and the next one, involving a West Coast-based company, could come as early as 30 days from now.