Datalink acquires storage provider Midrange Computer Solutions

February 8, 2007

Minneapolis, MI-based Datalink, a storage systems designer, has acquired privately held Midrange Computer Solutions (MCSI) for approximately $14 million in cash and stock. Based near Chicago, MCSI is a storage solutions provider with 14 offices across the United States.

Charlie Westling, Datalink president and CEO, said the acquisition increased its revenue base by approximately one-third and expanded the number of enterprise clients he serves.

The agreement consists of $5 million in cash and $9 million in Datalink common stock.
Datalink expects to merge operations during the first half of 2007. The company anticipates that there will be some overlap in capabilities. Datalink said it expected to see annual cost savings of approximately $1 million to $2 million by mid-2007 through shared synergies.

With 2006 revenues of approximately $47 million, MCSI offers a full range of storage area networks (SANs) and has implemented solutions for many Fortune 500 companies in financial services, communications, healthcare and manufacturing.

Datalink analyzes, designs, implements and supports information storage infrastructures that store, protect and provide continuous access to information. Datalink's specialized capabilities and solutions include storage area networks, network-attached storage, direct-attached storage and IP-based storage.

For more information, visit www.datalink.com.

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