For new owner, GTSI a dream come true

Corry Hong sounds practically sentimental when he talks about the debt of gratitude he feels for the United States and the aid the U.S. government provided to South Korea when he was coming of age in the 1970s.

“When I was growing up, we had nothing there and I saw tremendous support from the U.S. government. They even provided milk,” said the founder and CEO of Unicom Global. “It inspired me to come to the United States and work hard and dedicate myself to be a partner and part of the U.S. economy.”

Now with Unicom’s purchase of GTSI Corp. completed for the $76.7 million, Hong has the opportunity to provide hardware, software and services directly to the government on a large scale.

While Hong calls the acquisition a “dream come true,” the motivation behind the acquisition is not driven just by a boyhood sense of gratitude, but by opportunity.

Government agencies are struggling to cut costs from their operations and Unicom’s large family of hardware, software and services now have an established channel to the market through GTSI, he said.

The need for agencies to modernize their IT systems plays to Unicom’s strengths, he said.

The company, which counting GTSI now has 21 business entities, develops a host of products and services based on IBM zEnterprise, IBM i, Unix, and enterprise and open systems software products and services.

Unicom, of Mission Hills, Calif., provides large-scale enterprise software, computing hardware, IT services, telecom equipment and services, IT real estate, such as data centers, and IT financing services.

“We believe we can combine our intellectual property with hardware, software and services and deliver cheaper and longer term solutions to the government,” he said.

But GTSI, ranked No. 73 on the 2012 Washington Technology Top 100, was not acquired simply as a foothold in the market. Hong said he was impressed by the leadership and employees and the long history of service to the government.

The plan is to keep the senior leadership team in place and retain the GTSI name, at least for now. The company is in the process of acquiring Network Engines Inc., a maker of telecommunications appliances.

“NEI, GTSI and Unicom management and employees will gather and discuss branding and simplifying our brand to continue serving our customers,” Hong said. The NEI acquisition is expected to close later in July.

Hong is fully aware of the troubles GTSI went through nearly two years ago when it was suspended because of allegations it was using small businesses as a front to funnel dollars set aside for small businesses to itself.

“We carefully reviewed all the ramifications and history and progress,” Hong said. “I felt strongly that GTSI’s new management handled it very well. The risk of those problems has dissipated.”

Acquisitions will continue to be part of Unicom’s growth strategy with three to four deals a year. Hong targets mid-cap companies that are traded on NASDAQ and on the exchanges in London and Germany. The transparency of publicly traded companies makes acquisitions easier and quicker to complete, he said.

“We really like companies that are 20 or 30 plus years old. You can see a pattern of their growth and you can identify their strengths and weaknesses,” he said.

The growth opportunity in the government is similar to what Unicom is seeing in the commercial market space including application modernization, mobility, smart computing, data analytics, data storage, cloud computing, social media, and IBM zEnterprise and Power 7 solutions.

“There are over a trillion dollars of legacy applications owned by the government and Fortune 500 companies. At some point someone has to provide mobility, cloud computing, modernization and data analytics,” he said. “That’s the core of the next round of challenges that the government will face.”

X
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with our social media, advertising and analytics partners. Learn More / Do Not Sell My Personal Information
Accept Cookies
X
Cookie Preferences Cookie List

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Allow All Cookies

Manage Consent Preferences

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

If you want to opt out of all of our lead reports and lists, please submit a privacy request at our Do Not Sell page.

Save Settings
Cookie Preferences Cookie List

Cookie List

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

Strictly Necessary Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Functional Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Performance Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Social Media Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Targeting Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.