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Climb Global Solutions, Inc. Acquires Douglas Stewart Software & Services, LLC, Expanding Reach in North America and Strengthening Education Sector Offerings

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Climb Global Solutions, Inc. (NASDAQ:CLMB) has acquired Douglas Stewart Software & Services, (DSS) for $20.3 million, with a potential post-closing earn-out. This acquisition strengthens Climb's presence in North America and enhances its offerings in the education sector. DSS, a Wisconsin-based specialty distributor, focuses on SaaS solutions for education customers and reported an adjusted EBITDA of $5.3 million for the trailing twelve months ending June 30, 2024, up 10% year-over-year.

The acquisition brings 20 new vendor partners to Climb, including Adobe, Go Guardian, and Incident IQ. DSS serves over 500 value-added resellers and 250 campus stores across North America in both K-12 and higher education markets. The integration is expected to unlock synergies, cross-selling opportunities, and advance shared cloud marketplace initiatives.

Climb Global Solutions, Inc. (NASDAQ:CLMB) ha acquisito Douglas Stewart Software & Services (DSS) per 20,3 milioni di dollari, con una potenziale earn-out dopo la chiusura. Questa acquisizione rafforza la presenza di Climb in Nord America e ampliando la sua offerta nel settore educativo. DSS, un distributore specializzato con sede in Wisconsin, si concentra su soluzioni SaaS per i clienti educativi e ha registrato un EBITDA rettificato di 5,3 milioni di dollari per i dodici mesi terminati il 30 giugno 2024, in aumento del 10% rispetto all’anno precedente.

L'acquisizione porta 20 nuovi partner fornitori a Climb, tra cui Adobe, Go Guardian e Incident IQ. DSS serve oltre 500 rivenditori a valore aggiunto e 250 negozi universitari in tutta Nord America nei mercati K-12 e dell'istruzione superiore. L'integrazione è prevista per sbloccare sinergie, opportunità di cross-selling e promuovere iniziative comuni nel marketplace cloud.

Climb Global Solutions, Inc. (NASDAQ:CLMB) ha adquirido Douglas Stewart Software & Services (DSS) por 20,3 millones de dólares, con un posible earn-out posterior al cierre. Esta adquisición fortalece la presencia de Climb en América del Norte y mejora su oferta en el sector educativo. DSS, un distribuidor especializado con sede en Wisconsin, se centra en soluciones SaaS para clientes educativos y reportó un EBITDA ajustado de 5,3 millones de dólares para los doce meses anteriores al 30 de junio de 2024, un aumento del 10% en comparación con el año anterior.

La adquisición trae 20 nuevos socios proveedores a Climb, incluyendo Adobe, Go Guardian e Incident IQ. DSS atiende a más de 500 revendedores de valor agregado y 250 tiendas de campus en toda América del Norte en los mercados de K-12 y educación superior. Se espera que la integración desbloquee sinergias, oportunidades de venta cruzada y avance en las iniciativas de mercado en la nube compartida.

Climb Global Solutions, Inc. (NASDAQ:CLMB)는 Douglas Stewart Software & Services (DSS)2030만 달러에 인수했으며, 인수 후 보너스 가능성이 있습니다. 이번 인수는 Climb의 북미에서의 입지를 강화하고 교육 분야에서의 제품 제공을 증진시킵니다. 위스콘신에 본사를 둔 전문 유통업체인 DSS는 교육 고객을 위한 SaaS 솔루션에 집중하며, 2024년 6월 30일 종료된 최근 12개월 동안 530만 달러의 조정 EBITDA를 기록했으며, 전년 대비 10% 증가했습니다.

이번 인수로 Climb는 Adobe, Go Guardian, Incident IQ 등을 포함한 20개의 새로운 공급업체 파트너를 추가하게 됩니다. DSS는 북미 전역의 K-12 및 고등 교육 시장에서 500개 이상의 부가가치 재판매업체와 250개의 캠퍼스 매장에 서비스를 제공합니다. 통합을 통해 시너지 효과와 교차 판매 기회를 열고, 공동 클라우드 마켓플레이스 이니셔티브를 발전시킬 것으로 예상됩니다.

Climb Global Solutions, Inc. (NASDAQ:CLMB) a acquis Douglas Stewart Software & Services (DSS) pour 20,3 millions de dollars, avec une possibilité de primes après clôture. Cette acquisition renforce la présence de Climb en Amérique du Nord et améliore son offre dans le secteur de l'éducation. DSS, un distributeur spécialisé basé dans le Wisconsin, se concentre sur des solutions SaaS pour les clients éducatifs et a signalé un EBITDA ajusté de 5,3 millions de dollars pour les douze mois précédant le 30 juin 2024, en hausse de 10 % par rapport à l'année précédente.

L'acquisition apporte 20 nouveaux partenaires fournisseurs à Climb, notamment Adobe, Go Guardian et Incident IQ. DSS dessert plus de 500 revendeurs à valeur ajoutée et 250 magasins universitaires à travers l'Amérique du Nord sur les marchés K-12 et de l'enseignement supérieur. L'intégration devrait permettre de débloquer des synergies, des opportunités de vente croisée et de faire progresser des initiatives communes sur le marché cloud.

Climb Global Solutions, Inc. (NASDAQ:CLMB) hat Douglas Stewart Software & Services (DSS) für 20,3 Millionen US-Dollar übernommen, mit einer möglichen Nachschusszahlung nach dem Abschluss. Diese Übernahme stärkt die Präsenz von Climb in Nordamerika und erweitert das Angebot im Bildungssektor. DSS, ein spezialisiertes Vertriebsunternehmen mit Sitz in Wisconsin, konzentriert sich auf SaaS-Lösungen für Bildungskunden und berichtete für die letzten zwölf Monate bis zum 30. Juni 2024 ein bereinigtes EBITDA von 5,3 Millionen US-Dollar, was einem Anstieg von 10 % im Vergleich zum Vorjahr entspricht.

Die Übernahme bringt 20 neue Anbieterpartner zu Climb, darunter Adobe, Go Guardian und Incident IQ. DSS bedient über 500 wertschöpfende Wiederverkäufer und 250 Campusgeschäfte in ganz Nordamerika sowohl im K-12- als auch im Hochschulbildungsmärkten. Die Integration wird voraussichtlich Synergien, Cross-Selling-Möglichkeiten freisetzen und gemeinsame Cloud-Marktplatzinitiativen vorantreiben.

Positive
  • Acquisition expands Climb's presence in North America and strengthens its education sector offerings
  • DSS reported adjusted EBITDA of $5.3 million, up 10% year-over-year
  • Addition of 20 new vendor partners including Adobe, Go Guardian, and Incident IQ
  • DSS has an 85%+ retention rate for strategic vendor partners' offerings
  • Potential for synergies and cross-selling opportunities between Climb and DSS
Negative
  • Significant cash outlay of $20.3 million from Climb's balance sheet for the acquisition
  • Potential integration challenges and costs associated with merging DSS into Climb's platform

Insights

The acquisition of DSS by Climb Global Solutions is a strategic move with significant financial implications. The $20.3 million purchase price, funded from Climb's balance sheet, demonstrates the company's strong liquidity position. DSS's reported adjusted EBITDA of $5.3 million for the trailing twelve months, with a 10% year-over-year growth, suggests a reasonable valuation multiple and potential for quick ROI. The 85%+ retention rate for DSS's strategic vendor partners indicates a stable revenue stream, which could positively impact Climb's financial stability and growth prospects. However, investors should monitor the integration process and potential synergies realization to gauge the actual financial impact on Climb's future performance.

This acquisition marks a significant expansion for Climb in the education technology sector. By integrating DSS, Climb gains access to a robust network of 500+ value-added resellers and 250 campus stores across North America, spanning both K-12 and higher education markets. The addition of key vendor partners like Adobe, Go Guardian and Incident IQ enhances Climb's product portfolio substantially. The focus on SaaS solutions aligns with the growing trend of cloud-based educational tools. This move positions Climb to capitalize on the increasing demand for digital learning solutions, potentially leading to new growth opportunities in the EdTech space.

The acquisition of DSS by Climb Global Solutions represents a strategic market expansion in the IT channel industry. By strengthening its position in the education sector, Climb is diversifying its revenue streams and reducing market risks. The deal also provides cross-selling opportunities and potential synergies between the two companies' customer bases. The emphasis on subscription-based software licensing models aligns with current market trends towards recurring revenue models. However, investors should be aware of potential integration challenges and the need for effective execution to fully realize the benefits of this acquisition. Overall, this move could enhance Climb's competitive position in the North American IT distribution landscape.

EATONTOWN, N.J., Aug. 07, 2024 (GLOBE NEWSWIRE) -- Climb Global Solutions, Inc. (NASDAQ:CLMB), a value-added global IT channel company specializing in unique sales and distribution solutions for innovative technology vendors, announced it is acquiring Douglas Stewart Software & Services, LLC (“DSS”), a separate division of the privately held Douglas Stewart Company. DSS is a Wisconsin-based, leading specialty distributor focused on SaaS solutions for education customers in North America. The acquisition enhances Climb’s presence in the region and bolsters its product portfolio.

Climb closed on the acquisition of DSS for an aggregate purchase price of $20.3 million payable at closing (subject to working capital and other adjustments), plus a potential post-closing earn-out. Climb funded the acquisition of DSS utilizing cash from the company’s balance sheet. For the trailing twelve months, ending June 30, 2024, DSS reported adjusted EBITDA of approximately $5.3 million, which was up 10% over the same period in the prior year.

“Today, we are continuing with our organic growth by adding scale and expertise to our North American operations along with 20 new vendor partners including Adobe, Go Guardian and Incident IQ. DSS has delivered consistent growth through a subscription-based software licensing model, built on an 85%+ retention rate for its strategic vendor partners’ offerings,” said Climb CEO, Dale Foster. “DSS is a proven leader in the EdTech channel and provides services to more than 500 value-added resellers and 250 campus stores across NA in both the K-12 and higher education markets. We are pleased to welcome Chuck Hulan and his team to the Climb family and look forward to unlocking synergies and cross-selling opportunities while advancing shared cloud marketplace initiatives as we integrate DSS into our platform in the months ahead.”

Commenting on the acquisition, DSS CEO Chuck Hulan stated: “DSS is dedicated to empowering the education community with solutions that improve learning experiences for all students. Leveraging the software-centric infrastructure Dale and his team have built at Climb, we look forward to being able to rapidly innovate on the types of solutions and services we can provide to Climb’s vendors and bring new customers to our existing supplier partners too. We will bring education-specific customer analysis and targeting to applicable Climb vendors to help extend and expand their business, while enabling us to reach a broader audience and deliver additional resources to best serve the education market.”  

Those interested in distribution services and solutions should contact Climb by phone at +1.800.847.7078 (US), or +1.888.523.7777 (Canada), or by email at Sales@ClimbCS.com.

About Climb Channel Solutions and Climb Global Solutions

Climb Channel Solutions is a global specialty technology distributor focusing on Security, Data Management, Connectivity, Storage & HCI, Virtualization & Cloud, and Software & Application Lifecycle. What sets Climb apart is our commitment to transform distribution by providing emerging and established IT technologies, flexible financing, real-time quoting, best of breed channel operations, speed to market, and exceptional service to our partners worldwide. Climb Channel Solutions is a wholly owned subsidiary of Climb Global Solutions (NASDAQ: CLMB). Experience the Climb difference and learn how our people-first approach empowers VARs and MSPs to grow, scale, and accelerate their business. Visit www.ClimbCS.com, call 1-800-847-7078, and connect with us on LinkedIn!

For Media & PR inquiries contact:
Climb Channel Solutions
Media Relations
media@ClimbCS.com

Investor Relations Contact:
Elevate IR
Sean Mansouri, CFA
T: 720-330-2829
CLMB@elevate-ir.com

About Douglas Stewart Software Services, LLC

DSS is a trusted expert in educational technology, spanning back over 37 years. With decades of experience and a commitment to innovation, DSS continues to lead the way in delivering cutting-edge solutions to empower educators and enhance learning experiences. DSS stands at the forefront of education technology distribution in North America.

Operating as a dynamic business unit of the Douglas Stewart Company, where education has been a focus since 1950, DSS works with top-tier Edtech providers to deliver solutions to K-12, Higher Ed, & Non-Profits through 800+ reseller partners. DSS was established in 2021 to cater to the distinct requirements of software subscription licensing (Software as a Service/SaaS) in North America.


FAQ

What company did Climb Global Solutions (CLMB) acquire?

Climb Global Solutions (NASDAQ:CLMB) acquired Douglas Stewart Software & Services, (DSS), a Wisconsin-based specialty distributor focused on SaaS solutions for education customers in North America.

How much did Climb Global Solutions (CLMB) pay for the acquisition of DSS?

Climb Global Solutions paid $20.3 million at closing for the acquisition of DSS, subject to working capital and other adjustments, plus a potential post-closing earn-out.

What was DSS's adjusted EBITDA for the trailing twelve months ending June 30, 2024?

DSS reported an adjusted EBITDA of approximately $5.3 million for the trailing twelve months ending June 30, 2024, which was up 10% over the same period in the prior year.

How many new vendor partners does Climb Global Solutions (CLMB) gain from the DSS acquisition?

The acquisition of DSS brings 20 new vendor partners to Climb Global Solutions, including Adobe, Go Guardian, and Incident IQ.

What markets does DSS serve in the education sector?

DSS serves both K-12 and higher education markets, providing services to more than 500 value-added resellers and 250 campus stores across North America.

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