SWK Technologies pursues possible new CNY acquisition

SALINA — SWK Technologies, Inc., a Livingston, N.J.–based business-software reseller with an office in Salina, is working to add to its presence in the Central New York market.

But the firm isn’t yet to ready to divulge all the details.

“We are actively looking and we have one we’re actively starting negotiations with in the greater Syracuse area to take over their client base,” says Crandall (Chip) Melvin, CFO of SWK Technologies, Inc.

The targeted firm in question has about 125 clients, he adds.

Growth through acquisition is how SWK Technologies has expanded in upstate New York.  

SWK entered the Central New York market by acquiring Melvin’s company, AMP-Best Consulting, Inc. in 2006. The firm grew its presence with the acquisition of certain clients from
DM Systems, Inc. of Syracuse the following year.

SWK is a reseller of accounting, human-resources, and customer-relationship-management applications from Sage Software of Irvine, Calif. 

SWK, a subsidiary of SilverSun Technologies, Inc. (OCTBB: SSNT), is also a certified developer for Sage, meaning it can modify and customize Sage applications and even create new programs based on Sage code. 

The software-reselling industry has gone through a series of consolidations over the years, Melvin says. 

The SWK business model is to “go out and acquire smaller resellers that either … don’t have the resources to take it to the next level … don’t have the expertise to take it to next level, or … maybe [are] looking at retiring and sun-setting their practice,” Melvin says. 

About SWK Technologies

The firm focuses on business-to-business transactions and has about 250 clients in the Syracuse area. 

“Our specialization is in light, specialty manufacturing,” Melvin says. 

SWK’s clients are mainly mid-market companies, which it defines as ranging in size from $5 million in annual revenue to more than $150 million.

Over the past 15 to 20 years, the Central New York economy is moving toward specialized manufacturing, Melvin contends. The smaller firms are replacing the big manufacturing companies, such as New Venture Gear, Chrysler, and General Motors, he says. 

 “This is also a transportation and distribution hub,” he says, noting the Syracuse’s location at the intersection of two Interstate highways, 81 and 690. “Our software fits very, very well into that sweet spot of light manufacturing and wholesale distribution,” he says.

Many SWK clients also have operations in Rochester, Buffalo, and Albany, so the company refers to the upstate New York markets as the “Thruway Corridor.” 

“We view the Syracuse market as being kind of all of Upstate,” he says.

SWK Technologies, Inc. operates a local office in a cobblestone house at 6834 Buckley Road in Salina. Melvin owns the approximately 10,000-square-foot home, he says.

Jeffrey Roth serves as CEO of the software reseller.

The firm employs about 75 full-time workers, including nine in the Salina office. The employees include two sales executives, two field consultants who provide on-site visits for clients, three people who serve in administrative roles, and an employee who handles telephone support, according to Melvin.

SWK anticipates increasing its employee count to more than 100 by the end of the year, including five additional employees in the Salina office, Melvin says.

The Salina office is the center of the firm’s accounting and administrative functions, Melvin says. SWK Technologies operates in 18 states and has clients in all 50 states and in foreign countries, including Canada and nations in Latin America, Melvin says. 

SWK generated more than $13 million in revenue in 2012, and Melvin projects the firm will produce revenue of $17 million in 2013.

Contact Reinhardt at ereinhardt@cnybj.com

SALINA — SWK Technologies, Inc., a Livingston, N.J.–based business-software reseller with an office in Salina, is working to add to its presence in the Central New York market.

But the firm isn’t yet to ready to divulge all the details.

“We are actively looking and we have one we’re actively starting negotiations with in the greater Syracuse area to take over their client base,” says Crandall (Chip) Melvin, CFO of SWK Technologies, Inc.

The targeted firm in question has about 125 clients, he adds.

Growth through acquisition is how SWK Technologies has expanded in upstate New York.  

SWK entered the Central New York market by acquiring Melvin’s company, AMP-Best Consulting, Inc. in 2006. The firm grew its presence with the acquisition of certain clients from
DM Systems, Inc. of Syracuse the following year.

SWK is a reseller of accounting, human-resources, and customer-relationship-management applications from Sage Software of Irvine, Calif. 

SWK, a subsidiary of SilverSun Technologies, Inc. (OCTBB: SSNT), is also a certified developer for Sage, meaning it can modify and customize Sage applications and even create new programs based on Sage code. 

The software-reselling industry has gone through a series of consolidations over the years, Melvin says. 

The SWK business model is to “go out and acquire smaller resellers that either … don’t have the resources to take it to the next level … don’t have the expertise to take it to next level, or … maybe [are] looking at retiring and sun-setting their practice,” Melvin says. 

About SWK Technologies

The firm focuses on business-to-business transactions and has about 250 clients in the Syracuse area. 

“Our specialization is in light, specialty manufacturing,” Melvin says. 

SWK’s clients are mainly mid-market companies, which it defines as ranging in size from $5 million in annual revenue to more than $150 million.

Over the past 15 to 20 years, the Central New York economy is moving toward specialized manufacturing, Melvin contends. The smaller firms are replacing the big manufacturing companies, such as New Venture Gear, Chrysler, and General Motors, he says. 

 “This is also a transportation and distribution hub,” he says, noting the Syracuse’s location at the intersection of two Interstate highways, 81 and 690. “Our software fits very, very well into that sweet spot of light manufacturing and wholesale distribution,” he says.

Many SWK clients also have operations in Rochester, Buffalo, and Albany, so the company refers to the upstate New York markets as the “Thruway Corridor.” 

“We view the Syracuse market as being kind of all of Upstate,” he says.

SWK Technologies, Inc. operates a local office in a cobblestone house at 6834 Buckley Road in Salina. Melvin owns the approximately 10,000-square-foot home, he says.

Jeffrey Roth serves as CEO of the software reseller.

The firm employs about 75 full-time workers, including nine in the Salina office. The employees include two sales executives, two field consultants who provide on-site visits for clients, three people who serve in administrative roles, and an employee who handles telephone support, according to Melvin.

SWK anticipates increasing its employee count to more than 100 by the end of the year, including five additional employees in the Salina office, Melvin says.

The Salina office is the center of the firm’s accounting and administrative functions, Melvin says. SWK Technologies operates in 18 states and has clients in all 50 states and in foreign countries, including Canada and nations in Latin America, Melvin says. 

SWK generated more than $13 million in revenue in 2012, and Melvin projects the firm will produce revenue of $17 million in 2013.

Contact Reinhardt at ereinhardt@cnybj.com