This week the news broke that Ray Morgan Company (RMC) and UBEO Business Services have merged under a “private equity umbrella”.
As The Imaging Channel reports, this merger will unite “more than 700 employees and an installed base of 135,000 machines in field (MIF)”. Ray Morgan, which has been undergoing “rapid growth”, says that the alliance with UBEO “will allow RMC to focus aggressively on acquisitions in both the copier and IT channels.”
UBEO is a portfolio company of Texas-based private equity firm Sentinel Capital Partners. Following the merger, RMC will retain its California headquarters and Greg Martin will stay on as President, while UBEO’s CEO Jim Sheffield will also maintain his role.
Ray Morgan states that managed IT services represent “a big part of the future of growth”. UBEO “has a strong managed IT offering”; as a result, the merging of the two businesses “should go a long way toward helping continue the growth and profit from both ends.”
A competitive partnership such as this is described as “an ideal strategy for expanding both geographically and vertically” and will “provide additional capital for RMC to become an aggressive player in the acquisition game”.
