Raptec’s strategy is to become the global leader in innovative storage solutions. The company’s hardware and software solutions for eBusiness and Internet applications move, manage, and protect critical data and digital content. Raptec operates in three principal business segments: Direct Attached Storage (“DAS”), Storage Networking Solutions (“SNS”) and Software. These hardware and software products are found in high-performance networks, servers, workstations, and desktops from the world’s leading OEMs, and are sold through distribution channels to Internet service providers, enterprises, medium and small businesses, and consumers. Recently Raptec has experienced rapid growth and consistently profitable operations. Now Raptec is considering the acquisition of two of its suppliers – BearKat Tech Services (which provides enterprise network security services as well as providing technology consulting services to oil & gas firms) and East Texas Technnolgy (which specializes in software products for the oil and gas industry). What advice do you have for Raptec’s Board of Directors pertaining to their consideration of these potential acquisition targets?
