Smart Source Acquires Stratacom
September 21, 2010
New York-based Smart Source LLC (asi/328914), which specializes in business process outsourcing, has acquired selected assets of distributor Stratacom (asi/337838), a document management company with six offices in multiple states. Financial terms of the deal, which executives say came together quickly, were not disclosed. "We've had tremendous growth through our business model," said Tom D'Agostino, Jr., Smart Source's CEO, in an interview yesterday with Counselor. "About 35% of our revenues are from promotional products. We expect to eventually increase those revenues by 60%-70%."
According to D'Agostino, Smart Source plans to offer a variety of promotional products to Stratacom's diverse base of print clients. To ease the transition and help implement its business model, Smart Source has also hired 35 Stratacom sales representatives. "The company has been around for 32 years and they have an experienced sales force," D'Agostino said.
Founded seven years ago, Smart Source offers promotional products, print-on-demand services, inventory management, warehousing, fulfillment and other logistical support. Having made heavy investments in technology, the firm's e-procurement and automated system is used by more than 70 Fortune 500 companies. "We're one of the fastest-growing BPOs in the country," D'Agostino said.
With emphasis in the major markets of Los Angeles, Boston and New York, the distributor maintains 17 offices with eight points of distribution. Following its deal with Stratacom, Smart Source has a staff of 130 people with total company revenues of roughly $55 million annually.