WARWICK – IT services firm NetCenergy has acquired The Landon Group Inc., a smaller IT services company also headquartered in Warwick that specializes in local housing authority markets in Rhode Island and neighboring states.
The Landon Group will maintain its current brand and operate as a division within NetCenergy. Company President Donald Nokes said the deal will allow NetCenergy to expand both its range of services and its client base in Connecticut and Massachusetts.
“This is a strategic acquisition for NetCenergy,” said Nokes. “The additional technicians and engineers from Landon Group increase our depth and breadth with expertise in server, network, wireless and virtualization technologies. Plus, it allows us [to provide] advanced security surveillance offerings, a growing niche that businesses seek today.
The acquisition – first discussed between the two companies in October last year – added seven of Landon Group’s eight IT professionals to the NetCenergy team, bringing the company’s total workforce to 52 employees. The eighth Landon Group employee accepted a position with another company, Nokes said.
“It’s difficult to find IT talent in Rhode Island,” said Nokes. “We’re really excited about getting quality IT guys that have the right skill set to come in and integrate into our team.”
The Landon Group additions already have settled in at the NetCenergy headquarters on Elm Street in Warwick, Nokes said.
Peter Gill, former president of The Landon Group, will join NetCenergy as practice leader for the housing authority clients brought over to NetCenergy from Landon Group. NetCenergy acquired 80 percent of Landon Group’s previous clients through the deal. The remaining 20 percent – which Nokes said were clients that fit a different profile than NetCenergy’s business focus and were part of The Landon Group’s 2012 acquisition of SysGuru Inc. – will be transferred to another local IT provider.
Nokes said he expects the acquisition to improve NetCenergy sales by between 15 and 20 percent, and anticipates tripling Landon Group’s previous revenue within two years.
“Honestly, this is a situation where one plus one equals three,” said Nokes. “It helps us expand beyond the Rhode Island footprint. Probably 85 percent of our clients currently are in Rhode Island, and I believe that we will be a stronger company when we have more of our client base beyond the state borders.”
The majority of The Landon Group’s clients are based in Connecticut and Massachusetts, Nokes said, while NetCenergy’s primary focus has been in the Rhode Island health care industry.
Additional details about the acquisition were not disclosed.