Synergy sells portion of business to EarthLink

October 28, 2011 Updated Oct 28, 2011 at 7:35 AM EDT

By WKBW News
By Business First by David Bertola, Buffalo Business First Reporter

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October 28, 2011 Updated Oct 28, 2011 at 7:35 AM EDT

EarthLink Inc. has signed an agreement to purchase the IT Solution Center and hosted application business from Synergy Global Solutions Inc.

The purchase price was close to $5 million, according to a spokesperson for EarthLink (NASDAQ: ELNK), an Internet Protocol infrastructure and services company located in Atlanta. The acquisition is expected to close by year's end.

Amherst-based Synergy is a provider of IT products, services and solutions.

Synergy President Clark Crook will join EarthLink as vice president of Solution Center Services and will report to Brian Fink, EarthLink's executive vice president of managed services. Crook will also be responsible for managing EarthLink's Solutions Center.

Synergy, founded in 1971, is an employee-owned company with annual revenues of around $65 million. It provides multiple functions from its solution center, where the company creates unique help desks for every one of its customers. Its local clients include M&T Bank and Wilson Greatbatch. Synergy President Clark Crook said that the Amherst-based solution center manages around 1,100 individualized internal help desks for businesses across the country. For customers who were getting help desk services through Synergy, they'll continue to do so, as an entity partnered with EarthLink.

He called the sale a perfect marriage and "a tremendous opportunity for Synergy to focus on its core value added reseller business."

"EarthLink is committed to delivering world class information technology and managed services which will include everything from conenctivity serviecs to security services, and hosting," he said. "We provide the customer service solution that will basically tie all these solutions together."

Synergy has offices in Buffalo, Rochester and Syracuse, and remote workers in Jamestown, Baltimore and New York City. Crook said the acquisition will not affect those employees.

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