Grapevine MSP buys LANPRO Systems in bid to form 'tech powerhouse'

Jun. 14—Two of Bakersfield's leading technology companies have joined forces, creating what may be the largest managed IT services business in the San Joaquin Valley.

LANPRO Systems Inc.'s acquisition Saturday by Grapevine MSP Technology Services brings together longtime competitors amid an industry consolidation trend. Together they represent 69 employees and $12.9 million in annual sales.

The combined company will retain the Grapevine name. LANPRO's former owner has become vice president of business development at the merged operation.

Terms of the deal were not disclosed.

Since its founding in 2009, Grapevine has been named five times to Inc. magazine's list of the nation's 5,000 fastest-growing companies. Like LANPRO, founded 20 years ago, it has provided managed IT services, network infrastructure management, cloud computing solutions, cybersecurity and data backup and recovery.

"This move ... just further strengthens us and further puts us to the forefront of IT services throughout the entire San Joaquin Valley," Grapevine President and CEO Joe Gregory said in a phone interview Wednesday.

LANPRO former owner Chris McGlasson was not available for an interview Wednesday but said in a news release the transaction will be seamless.

"Client satisfaction has always been at the core of our respective companies, and we are thrilled to continue this tradition as a unified force," he stated in the release.

Business leaders in Bakersfield's tech industry applauded the acquisition, calling it a positive development for customers, employees and the wider community.

President Michael Hansen of locally based Advanced Data Storage Inc. said by email both are quality companies. He added that Kern's tech industry shows promise with well-trained workers and an entrepreneurial mindset.

"Kern County businesses still prefer to use local and our technical sector is poised to evolve with future demand," Hansen wrote.

The transaction sounds a note of optimism in a local sector that has suffered a drop in morale after the apparent collapse of Fresno-based Bitwise Industries, which on Wednesday issued layoff notices to all 900 of its employees, including a substantial but undisclosed number in Bakersfield.

Jim Damian, founder of Stria LLC, a Bakersfield-based business processes outsourcing company whose fate remains unclear since its August acquisition by Bitwise, said by email Wednesday he couldn't be happier for Grapevine and LANPRO. He predicted their union will create a local "tech powerhouse."

"Ideally this merger helps our county to continue along the path of becoming a regional hub for tech services," Damian wrote. "Economic development depends on local companies continuing to grow and garner clients from other regions."

Gregory said he and McGlasson are considering how to proceed by comparing notes on whose various systems might be the most efficient processes to carry forward. Most of LANPRO's employees will be offered jobs at Grapevine, he said.

Grapevine was by far the larger of the two: According to Gregory, Grapevine had 49 full-time employees and $9.7 million in sales last year, compared with LANPRO's 20 employees and $3.2 million in sales.

While both have been headquartered in Bakersfield, LANPRO's focus concentrated on the local area and the Central Coast. Grapevine has a satellite office in Visalia, a tech worker stationed on the coast and business across the San Joaquin Valley and Tehachapi.

Gregory said the industry has experienced consolidation lately, not just to capitalize on opportunities to improve operating efficiencies but also because some executives want to worry less about day-to-day operations.

He emphasized the acquisition was not driven by problems at either company, and that clients have been upbeat about receiving news of the deal.

"There's no downsides to this," Gregory said.

Advertisement