COMPANIES

GTSI undertakes major rebranding

After 30 years, say good-bye to GTSI, hello to Unicom Government

The departure of chief operating officer Jeremy Wensinger isn’t the only big change at GTSI; in fact, it’s not GTSI anymore.

The company’s parent, Unicom Global, is dropping the GTSI name and has rebranded the company Unicom Government Inc., said Corry Hong, Unicom’s founder, president and CEO.

With Wensinger’s departure, Hong is also the CEO of Unicom Government, he said.

Unicom acquired GTSI in June 2012, taking the company private in the process. So far, the rebranding has not extended to the GTSI website, which is still company’s primary online presence.

In addition to rebranding GTSI, Unicom also is rebranding InSysCo, a services company GTSI acquired in 2011. InSysCo will now be known as Unicom Logistics. GTSI Financial Services Inc. has been renamed Unicom Capital LP.

The company also has rebranded another recent acquisition, Network Engines Inc., renaming it Unicom Engineering, Hong said.

With the restructuring of the GTSI business, Wensinger’s “operational status with Unicom Government was revised as an outcome of the consolidation of the larger corporate entity and management operations,” Hong said in an email.

Wensinger will serve as a consultant to Unicom Government on an as-needed basis, Hong said.

“As a practical matter, the change will have no significant effect upon Unicom Government’s operations, as I have been effectively managing the company since its acquisition in June 2012.” he said.

Since its founding in 1981, Unicom has acquired numerous companies and now has 25 corporate entities under the Unicom Global umbrella.

GTSI was founded as Government Technology Services Inc. in 1983, and at one time was the largest value-added reseller serving the government market, with nearly $1 billion in annual revenue.

But, as the market changed and IT products became more of a commodity, the company saw its revenue fall. It also was attempting to remake itself as a services and solutions provider, a driver behind the acquisition of InSysCo.

The company’s revenue took a major hit in 2010 and 2011, as it was rocked by allegations that it was serving as a front for small business that funneled contract dollars from the small-business prime contractor to GTSI. The scandal was kicked off following an investigation by the Washington Post.

GTSI was suspended from government contracting by the Small Business Administration for nearly a month, and entered into an agreement with SBA that included closer monitoring and the departure of its then CEO Scott Friedlander, though he was never accused of any wrongdoing.

The company brought in Sterling Phillips in late 2010 to serve as CEO. He and Wensinger stabilized the company, though the aftermath of the scandal and SBA suspension continued to impact results.

In May 2012, the acquisition by Unicom was announced. The deal closed in June, and was worth $76.7 million, a 47.9 percent premium over the company’s share price at the time.

The acquisition was Unicom’s first serious foray into the federal market. Hong described the deal as a “dream come true” for the immigrant from South Korea.

Reader Comments

Thu, Mar 7, 2013

A few ex-insider thoughts 1) The SBA basically said sign a guilty plea, throw Freidlander under a bus and agree to never mention the strong tactics or no Federal Revenue for you until we get to court in 3 or 4 years. It was accept the guilty until proven innocent deal or go out of business. 2) The Post witch hunt was based on a cozy connection with a small business who had a grudge after losing a deal to GTSI. 3) GTSI Executive and Senior management (think Sandy) was created one debacle after and the SBA was the final nail in the coffin. 4) The GTSI board was generally stocked with senile geriatrics desperately shopping the company from the time they dumped Dendy Young, after his disastrous 007 campaign inflated operating costs insanely. 5) Hong seems to be an a ego-maniacal fool intent on destroying what he bought at fire-sale prices.

Wed, Mar 6, 2013 hahahaha

"effectively" was misspelled...it should have been horrendously

Wed, Mar 6, 2013 Steve Reston, va

Should also be noted that in the follow on Government Audit and investigation, ZERO wrong-doing was found with regard to small business misdeeds. Nice how the Govt can arbitrarily shut a company down, take away the livelihood of hundreds of people w/o proof, and effectively put them out of business. Missed that story in the Post.

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