Prior to the merger, privately owned LINX operated three lines of business: voice and data cable services and installation, security systems integration, and AV systems integration. Also Denver-based, Solstice has provided integrated electronic systems to commercial and high-end residential customers.
Linx's Poolview. Travis Deatherage, president of Linx Multimedia, believes the commercial and residential market sectors are “very complementary” to each other.
Linx’s AV business has been entirely commercial, and most of the company’s activity was in the voice and data sector. According to Travis Deatherage, Solstice founder and president of the new Linx Multimedia subsidiary, Linx had essentially taken the AV department as big as it could, but at the same time, CEO and owner Erik Isernhagen saw “tremendous opportunity,” in the AV market.
Linx will continue to operate its other two lines of business under the Linx brand.
Founded in 2003, Linx expanded its business into the AV systems marketplace four years ago and previous acquisitions include the purchase of Denver-based AV company ANSI in 2007. Solstice Multimedia was founded in 2002 and at the time of this acquisition, employed 10 people, generating $2 million in revenue, while Linx employed 25 people and generated $5 million in the AV sector. The new Linx Multimedia is projected to generate $9 million in revenue for 2011.
Solstice and Linx have seen the AV business grow, and the intention of this merger is to create a strong market leader in and around Colorado. As many company mergers today intend to cut costs and consolidate workforces, “I think this is a really unique merger in this time,” Deatherage said.
The new subsidiary will employ about 175 people after the merger and is hiring for new positions across the board, including project management, programming, sales, and sales engineering.
As an integrator, Solstice has worked with construction builders through projects, providing ongoing service through remote access and systems monitoring once these projects conclude. Linx Multimedia will continue to offer these same services, but with much more muscle behind every job, particularly on the residential end to “execute custom homes better,” Deatherage said.
Deatherage is also now better positioned to attract top talent through competitive benefits, and the added financial resources from the merger will enable his team to build offsite in their own labs.
“There is strong demand for an AV integration firm [that] can create the right client experience wrapped inside of a professional builder’s mentality,” Isernhagen said in a press release.
Deatherage believes the commercial and residential market sectors are “very complementary” to each other, and his firm has “always treated residential projects with a commercial mindset,” he said.