California Tech Company Buys Cornerstone Consulting

Minneapolis, MN – November 11, 2005 – As published by the Minneapolis Business Journal today:

Tech-services firm Cornerstone Consulting has been bought by a California tech company looking to expand its corporate footprint.

Cornerstone, which ranked on The Business Journal's list of the fastest-growing private companies in Minnesota in 2004 and 2005, became part of Visionary Integration Professionals (VIP), of Folsom, Calif., last month. Terms of the deal were not disclosed.

Each company had a staff of about 125. Cornerstone's revenue was roughly $17 million in 2004, while VIP had revenue of about $30 million. Cornerstone's founders -- Clint Sawinski, David Rowe and Dean Nelson -- will remain with the company.

Jonna Ward, president and CEO of Visionary Integration Professionals, said the California firm had been looking for acquisitions in the Midwest. The firm already has a presence on both coasts, while Cornerstone has offices in the Twin Cities and Dallas.

VIP was also looking to broaden its expertise; 80 percent of its revenue prior to the merger came from government clients. With Cornerstone, which does testing and quality-assurance work for the likes of Cargill Inc., Ceridian Corp. and Target Corp., the balance between commercial and government work is closer to 50-50.

There weren't many targets meeting all of VIP's criteria. "They went right to the center of the radar screen," Ward said of Cornerstone.

She met Cornerstone's executive team a year ago at a conference, but the two firms didn't start talking about an acquisition until late June.

Despite the different client base, Ward said the two firms' cultures mesh well. They also share a knack for survival; both businesses managed to navigate the brutal tech downturn that claimed many rivals.

Now that the tech market is picking up again, Ward expects more consolidation as the better-heeled survivors seek to gain a competitive edge.

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About VIP

Established in 1996, Visionary Integration Professionals (VIP) is a global technology and outsourcing firm that has provided solutions to over 900 clients in multiple industries as well as federal, state and local government. VIP helps companies challenge boundaries and uncover new possibilities to increase productivity, maximize revenue, improve performance, mitigate risk, and reduce costs. With nearly 1,000 staff companywide, VIP offers expertise in areas of Business Intelligence and Data Warehousing, SAP Integration and Consulting, Technology Integration and Operations, Talent and Learning Management, Quality Management, and Management Consulting. VIP’s corporate headquarters is located in Folsom, California with offices in Sacramento, Minneapolis, Dallas, Denver, New York City, Alexandria, Houston, and Bangalore, India. More information can be found at www.vipconsulting.com.