Device supplier acquires ITAD company

[caption id="attachment_26060" align="aligncenter" width="1200"] Company leaders said CTL's acquisition of 3R Technology will open up new growth opportunities for both companies. | Loocmill/Shutterstock[/caption] CTL Corporation, an Oregon-headquartered cloud-computing company with a focus on education and enterprise, acquired ITAD firm 3R Technology in a move to create a one-stop shop for clients of both companies.  Jason Mendenhall, CEO of CTL, said in an interview with E-Scrap News that the acquisition "really changes who we are and what we think we can do for our customers." CTL manufactures a range of ChromeOS devices geared toward schools and businesses\, and also takes back its own devices to be refurbished at its Oregon warehouse. "A big part for us is it now allows us to provide comprehensive technology lifecycle services to our customers, whereas prior to this acquisition, we were really only able to offer new devices or refurbished devices – our own CTL-based (refurbished) devices. This allows us to take a much bigger approach." 3R Technologies also does refurbishing, Mendenhall said, but the combination of the companies will allow them to access more markets and customers.  Future plans include offering "fleets" of thousands of devices, either for purchase or loan, if school districts or other customers need them for state testing, for example. A trade-in system is also in the works, so customers can turn in older devices to get a discount on their next purchase.  "We've always had a pretty high demand for refurbished devices and at CTL alone, we haven't been able to provide that scale," he said. "But through partnership with 3R, we can really build opportunities for purchase at scale or even rental and lease at scale if some customers need."  Previously, CTL did not offer certified data destruction, which it will be able to via 3R Technology, the company noted, as the company has R2v3 and NAID AAA certifications.

Geographical and operational match

The companies are both based in the Pacific Northwest: CTL in Beaverton, Oregon, and 3R Technology several hundred miles north in Kent, Washington. Mendenhall said while the companies did not have a deep relationship prior to the acquisition, CTL was looking for an ITAD company in the region that had industry certifications, and 3R Technologies fit the bill in a unique way.  "The work that 3R does and the work that CTL does is so complementary, but it's also distinctive," Mendenhall said. "In a lot of cases, when you have an acquisition, there's sort of a 'how do we get leaner,' but in this case, we're planning to retain 100% of the employees, 100% of the capabilities, the facilities, the certifications. It really is such a complementary but not overlapping skill set that it'll really help both organizations grow, which is kind of special for an acquisition situation."  CTL has a 90-day plan to integrate the companies, Mendenhall said, starting with operations, brand and HR, then expanding into sales and "then ultimately this lifecycle of taking in trade-ins at scale and delivering refurbishments at scale."  "It's an aggressive timeline, yeah," he said, but as the companies are in the same region, "being in close proximity allows us to really collaborate directly" and build the face-to-face relationships that ensure long-term success after an acquisition. 

Footprint expansion and growth into new markets

Glen Gaidos, CEO and Founder of 3R Technology, said in a press release he was "thrilled" to join CTL, as the acquisition opens up more markets across the nation.  "Meanwhile, with increased resources, our customers, whom we have been serving for over two decades, can expect even more innovative and cost-effective ITAD solutions," Gaidos added.  One of those newer markets for 3R Technology is schools, and Mendenhall said there's plenty of opportunities for growth in that sector as school budgets shrink, the necessity of classroom technology increases and the global state of tariffs and imports shifts.  "Offering them refurbished options to make sure they can bridge between budget years is really a service we're excited to bring to our customers," Mendenhall said, and the Chrome operating system is "a really nice fit for school districts to make sure they can keep learning devices in the hands of the kids who need it most, at a rate that they can afford."  Looking forward, Mendenhall said CTL plans to continue to grow across the U.S., via a combination of partnerships and acquisitions. "From a legal standpoint, CTL stands for 'computer technology licensing,' but I really want it to be an identity shift for us where we think of it as 'comprehensive technology lifecycle,'" he said.  "The vision is that our customers view us as someone that can support them through the whole lifecycle of their devices and managing the services that go around that. 3R is a beautiful step for us to providing those comprehensive services." 

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