Sandler and X4 Solutions Combine to Create Massive Cloud and Telco Master Agency

Los Angeles-based Sandler Partners has acquired X4 Solutions in a move that will create one of the largest distributors of cloud services and telecommunications connectivity offerings in the U.S.

Together, the two companies serve more than 4,600 telecom agents, cloud services brokers and IT consultants, and boast “140 direct relationships with providers of voice, data, connectivity, cloud computing, cloud communications, mobility, security and more,” according to the company.

The combined entity will employ 44 employees and is expected to generate a combined $67 million in revenue for 2016. Terms for the acquisition were not disclosed.

The union between Sandler, which has a large footprint throughout California, Arizona, Nevada, Texas and elsewhere, and Midwest-based X4, which serves agents in Illinois, Indiana, Missouri, Wisconsin and more, will create a company with a true national presence. What is more, the combined companies share just 3 percent of the same agents, meaning redundancy and overlap in virtually all of its trading zones will be minimal.

In a prepared statement, Sandler said the deal will help the company operate at greater scale, deepen its supplier relationships, negotiate better contracts and deliver more sophisticated solutions.

With legal work and due diligence complete, the job of combining the new entities has begun. Sandler does not expect to announce any staff reductions as a result of the deal. In fact, a number of X4 executives and managers have already been put into key roles at the combined company. X4 President Curt Allen, for example, has been tapped to serve as President of Channel for Sandler Partners while X4 co-founder and CFO D.J. Fioretti will remain at the company and work in a consulting capacity. He will oversee the financial integration of the two companies.

As for X4 co-founder and CEO Steve Braverman, he will devote his energies to marketing, events and customer engagement.

As for the future, Sandler hinted the deal with X4  may not be its last. In a prepared statement, the company said, “Because the X4 acquisition is complementary to our current operations, this deal leaves us in a stronger position for future acquisitions.”