Using acquisitions of other companies to grow a company’s revenue is a tested strategy that has proven successful throughout business history. Acquisitions are a way to quickly enter markets and to leverage that company’s existing customer relationships.
Imaging Technologies Corporation, under the leadership of CEO Brian Bonar, written about on ModernLuxury.com, has pursued this strategy in recent months. Their latest acquisition is of SourceOne Group, Inc. That company is in the professional employer organization (PEO) sector. This is a new vertical for ITEC. Bonar said that this deal will allow the company to tap SourceOne Group’s customer base for possible cross-selling opportunities.
Bonar said he was enthused about the synergy because the combined companies represent administrative services and office system solutions. The administrative services reseller network can realize additional revenue by selling office system solutions. The opportunities also exist in the opposite direction. Those who are selling office system solutions can introduce their customers to administrative services. Either way would benefit the top-line growth in revenues for ITEC.
ITEC used to be solely a manufacturer of office equipment. For the last few years, the company, under Bonar, has pursued a new strategy that emphasizes marketing over manufacturing. Their acquisitions have strengthened their sales efforts.
San Diego-based Imaging Technologies Corporation, founded in 1982, trades on the OTC market with the symbol ITEC. ITEC is focused on acquiring office product sellers to increase their revenues and sales team. The plan is to grow to a larger, global scale with a focused plan. The office products sector continues to grow, especially in niches. A niche marketing strategy matches solutions with existing problems. Customers buy when they feel the solution reaches their “pain points.”
ITEC is seeking to expand sales at a faster rate. Bonar’s strategy has settled on administrative services. He feels that this area taps into ITEC’s system integrations capabilities. They are aiming their current marketing at small and medium-sized businesses that are impacted in a negative way by certain administrative tasks. The personnel that has joined the company due to acquisitions is uniquely qualified to help solve those problems.
Bonar said that the SourceGroup One deal will add between $40 to $50 million annually to sales of ITEC. This should help the company on an operational basis. SourceOne will continue to operate as a wholly-owned subsidiary of ITEC. Small and medium-sized businesses are constantly under pressure to improve their efficiencies. The companies that are unable to do that fall prey to competition. With constantly rising expenses, most need to look for cohesive strategies that help them gain revenue while cutting expenses. That’s exactly what the new offerings from ITEC can do. The office equipment and administrative services are geared towards achieving both of those goals.