Alcott Enterprises has acquired Shadow Systems for an undisclosed sum.
Jordan Alcott, chief executive of the information technology consulting company based in Torrance, said that the two companies had shared some clients and worked together on a project-based basis for a few years.
He added that Shadow Systems worked more on the physical side of systems integration, troubleshooting and installation, while Alcott Enterprises handled consulting, IT support and managed services.
Things changed when Shadow System’s founder, Bill Yount, fell ill last year. His son, Matthew Yount, had been working at Alcott Enterprises on business development and came to Alcott looking for a way to keep his family business running and exploring the idea of an acquisition. Bill Yount has since passed away.
“(Shadow Systems) works with a lot of different industries and different customers and clients of different sizes,” Alcott said. “It’s become a really great conversation to have with those clients, because they were all still very close with Bill, and having Mathew on our team has always helped open those doors and make it a little bit more warm and friendly. Bringing over those customers, it’s a very warm feeling. It’s not just a hard kind of acquisition.”
Alcott said his company is finalizing the integration of the two businesses’ teams and systems. He said the Shadow Systems brand name will either disappear or transfer, but that the main goal right now is ensure all accounting and management systems are combined.
Yount, a longtime friend of Alcott’s, will be staying on as Alcott Enterprises’ strategic business-development executive.
“Shadow Systems had around 40 customers and their model was very much a ‘break-fix’ type of scenario,” Alcott said. “Our model is very different; we are more a subscription-based, fully managed type of solution. So, part of what we are doing right now with those existing customers is working with them (on) continuing the relationship but (also) bringing over some of the advantages of working in that managed security and managed IT space.”
In addition to its resources and team, Alcott Enterprises will welcome clients from new sectors and receive Shadow Systems’ clearance to work on government projects. Shadow Systems had been working with companies in the medical, retail, health care and veterinary sectors.
“Shadow Systems (has) certifications from the U.S. government … Because of our acquisition of Shadow Systems, we are certified by them to be able to do and continue that work. It allows us to get into a lot of that government space in the public sector,” Alcott said.