Estimated reading time: 1 minute, 12 seconds

SWK’S FIT IN NEW PARENT? Featured

 Many are wondering how SWK Technologies fits in QXO, the renamed parent company that was SilverSun Technologies.

SWK, which is most of SilverSun’s operations, had revenue of $54.5 million reported for Bob Scott’s Top 100 VARs for 2024. But SilverSun received an investment of $1 billion from Brad Jacobs with the name change with the goal of entering the building products distribution industry. The original plan was to spin off the reselling entity in a new company which made sense, but that plan was dropped. As an indication of how the scale of QXO dwarfs SWK came in the announcement of QXO’s hiring of Ihsan Essaid as CFO with a base salary of $900,000. The company filed the information with the SEC which includes goals for raising Essaid’s base salary as revenue grows. The lowest revenue band is an annual run rate of $5 billion to $10 billion and it scales up from there. A logical move would be the sale of SWK, which doesn’t seem to fit with the plan outline by Jacobs and with VARs receiving private equity investment, a buyer such as Evergreen Services Group, would make sense. The example that best illustrates this kind of process was. years ago when the company that owns the Liberty Tax Services chain, was taken over and became the Franchise Group, a publicly held company. Liberty was similarly dwarfed by the new businesses that were acquired and was then spun out.

 

Read 498 times
Rate this item
(0 votes)

Visit other PMG Sites:

PMG360 is committed to protecting the privacy of the personal data we collect from our subscribers/agents/customers/exhibitors and sponsors. On May 25th, the European's GDPR policy will be enforced. Nothing is changing about your current settings or how your information is processed, however, we have made a few changes. We have updated our Privacy Policy and Cookie Policy to make it easier for you to understand what information we collect, how and why we collect it.