Local IT company buys Grants Pass firm

Core Business Services has boosted worker count to 20

Information technology provider Core Business Services has acquired Southern Oregon Managed Networks of Grants Pass, expanding both its client base and footprint.

Core Business Services, based in Medford, has roughly 75 clients in nine states. The new acquisition boosted its employee count to 20. Jeremy Nugent founded Southern Oregon Managed Networks in 2005, a year before Core Business Services began.

"They were a little more focused in the medical industry, so it provides good synergy for us," said Scott Anderson, Core Business Services president and chief executive officer. "We've been diving into the medical field, but this gives us a foothold in Grants Pass, as well."

Discussion began last February, Anderson said. "We hit a lull and came back to the table at the end of October," he said. "But once we got back to the table, we got things done pretty quickly."

Anderson said the primary change for SOMN clients will be a switch from hourly to monthly rates.

"They had been engaged in an hourly IT model, and we engage our customers with a fixed-fee monthly model, working proactively with clients to support their computer networks."

Director of Operations Brian Simmons said the addition of health care clients is well timed because of new legislation and the growing impact of technology.

"We anticipate the need for organizations like ours to rise," he said.

It's the second acquisition for Core Business Services, which is located at the Medford airport. The company picked up Pacific Computer Works in 2007.

Anderson said the company will continue with methodical expansion.

"It's something we're very focused on," Anderson said. "But we want to grow correctly and profitably.

"We have had a presence in Grants Pass for some time now, but it is nice to put an official foot down in the community and establish some local roots," said Anderson, who grew up in Rogue River. "Having an office here will allow us to provide technical resources to our clients in Josephine County that much quicker. Since responsive customer support is at the heart of our business, this move makes a lot of sense for us."

Reach reporter Greg Stiles at 541-776-4463 or business@mailtribune.com.

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