When companies expand through acquisition, they usually add a business that compliments their business model. DASI Solutions went a little off that script when it bought a company in California earlier this summer.
"The business is identical to what we do," says David Darbyshire, co-owner of
DASI Solutions. "We just doubled in size."
DASI Solutions specializes in engineering and tech work, helping companies implement collaborative technologies for product development. It's based in downtown Pontiac, where the 20-year-old firm has bought its building, renovated it, and become one of the city’s significant stakeholders.
DASI Solutions acquired Digital Dimensions, which is headquartered in San Diego. Both companies are resellers of Dassault Systèmes SOLIDWORKS 3D CAD and engineering development solutions. The combined companies will operate in markets in Michigan, Indiana, Arizona and California. Since they both do the same thing, the merger allows DASI Solutions to capitalize on efficiencies and scale its business.
DASI Solutions was already growing when it executed the acquisition, having raised its revenue by $1.5 million to $13 million annually. Now with the addition of Digital Dimensions, the company has revenues in the area of $25 million, climbing by 12-14 percent per year.
"That's a very conservative growth plan," Darbyshire says. "I expect to be in the $27 million-$28 million area by the end of the year."
DASI Solutions is also adding jobs. It brought on another 35 employees with the acquisition, bringing the total staff to 85 people. It's now looking to hire three people in video content production, web development, and sales.
Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.
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