A busy year for print solutions provider Just-Tech continued this week, as the Xerox partner further expanded its geographic footprint with the acquisition of fellow Xerox agent Apple Valley Office Products.
Apple Valley marks the second deal completed in the past six months by Just-Tech, which purchased Huntington, W.V.-based Peake Office Solutions in April. The La Plata, Md.-based Just-Tech has expanded its presence in the Shenandoah Valley and gained a foothold in the tri-state area encompassing parts of West Virginia, Ohio and Kentucky by bringing the two smaller partners into the fold.
Joshua Justice, president of Just-Tech, said both acquisitions create an easy avenue for his company to continue ramping up its managed print, managed IT and custom app development businesses.
"For some of these companies, it's hard to offer these different services because they don't have the backend support," Justice told CRN. "That's where we come in. We already have all of that. We can start selling those services today."
In the case of Apple Valley, which has been in business for 33 years, regional proximity and a well-established reputation within its area of operation made the purchase an easy decision for Justice. He said the average Apple Valley sales team member had 15 years of sales experience.
The combined company will expand to 35 employees, 10 of which are Just-Tech IT professionals that exclusively focus on the managed IT business, Justice said. The practice has experienced 70 percent year-over-year growth and includes network, workstation, security and printer management services.
Justice said the Apple Valley deal creates a host of recurring revenue opportunities with SMB customers in the Shenandoah Valley, particularly with non-profits and religious organizations, because of the associated cost savings. Clients can save an average of 20 percent per person by relying on Just-Tech for IT management, he noted.
"We leverage one to help the other," he said, referring to managed print and IT.
Just-Tech, which was named Xerox App Developer of the Year in March, maintains a flourishing custom app business that accounted for 10 percent of its revenue as of this spring. The company has built thousands of apps, including custom scanning apps and programs that update software and firmware automatically, and even licensed them to fellow Xerox partners.
The app business has proven to be a significant differentiator for Just-Tech, known as Southern Solutions prior to a rebranding announced in March.
"It's designed around improving workflow and increasing efficiency – the same goals of managed print, the same goals of managed IT. All three of our services work toward the (same goals)," Justice said.
The agent's managed print push comes at a time when Xerox, which unveiled a managed print services accreditation program this summer, is encouraging partners to take advantage of "huge" recurring revenue potential in the SMB market. Justice said his company intends to earn its accreditation in the near future, once the bulk of the integration work for its latest acquisition is complete.