Impact Networking Buys Montrose Document Solutions Firm
Business services firm Impact Networking made its commitment to the Los Angeles market final last week, purchasing Montrose-based Lance Allen Document Solutions, or LADS, for an undisclosed sum.
Chicago-based Impact will shift the newly acquired operations to a current office downtown and a warehouse in the Arts District.
The company said the LADS acquisition was part of a strategy to gain a toehold in the Southland as it looks to increase its overall growth.
“We wanted to break into the L.A. market because it’s the second-largest in the country,” Impact Chief Executive Frank Cucco said. “Our goal was to find a company like (LADS) and use its customer base as a way to cross sell our products.”
LADS has some 600 business customers in L.A. the companies said. The outfit offers mostly hardware, such as printers, whereas Impact also offers services such as cloud computing, consulting and branding.
Impact currently employs a total of about 450 people and has 15 locations, with revenue projected to surpass $100 million in 2017, according to Cucco. The deal for LADS gives Impact 16 total employees in Los Angeles.
“We’re still in our infancy as far as moving into L.A.,” Cucco said. “We plan to continue to increase our market share and continue to grow here.”
The deal took about four months to put together, Cucco and LADS Chief Executive Rick Powell said. Powell said he was looking to cut back his workload and eventually retire, and the Impact deal made sense.
Powell said it wasn’t quite as hard for him to cede control of the 50-year old company because he only took over in the last decade.
“I was well into my career before I bought the business,” Powell said. “So, it’s not really my baby. I don’t have as many nostalgic feelings as someone might have who built the business up from nothing.”
Credit: Los Angeles Business Journal