Certified CIO, Kear IT part ways after year-long union

Original: http://baltimore.bizjournals.com/baltimore/stories/2010/04/12/story12.html

Certified CIO, Kear IT part ways after year-long union
Baltimore Business Journal — April 12, 2010

Two Baltimore information technology firms have gone their separate ways a year after striking an agreement for one to acquire the other.

Kear IT of Catonsville had acquired Certified CIO, then of Hanover, Pa., in January 2009. The deal brought 25 new customers to Kear IT, and a few employees, including Certified owner Steve Plumlee. But by December, the two companies had formed a new agreement — to split up.

Both say they still are growing, but separately. They offer different reasons for why the acquisition was canceled, however.

The acquisition came as Kear IT was coming out of a legal settlement with the former business partner of its owner, Michael Kear. Kear had worked with Andrew Brenkus at Priority Partners, another Catonsville IT firm, which closed in 2008.
Brenkus had sued Kear in U.S. District Court in 2008 for $1 million, alleging that Kear had stolen his employees and clients. The two parties came to a confidential settlement agreement in early 2009.

Plumlee said he had been in acquisition talks with Brenkus, but when Priority Partners closed, he linked up with Kear and Kear IT. Both companies specialized in IT products such as network management and help desk services. Plumlee served as vice president under CEO Kear.

Kear said in a statement to customers that while the acquisition had been “a wonderful success,” Plumlee was leaving for personal reasons. Plumlee told customers the acquisition was being canceled because “a series of agreed upon milestones were not met by Kear IT.”  Kear said in an interview he was not sure to what milestones Plumlee was referring.

No legal action was taken by either party, and both men said the separation ended with Plumlee repaying Kear for the about $15,000 he had invested in Certified CIO.
Certified CIO is now based in a Towson office with three employees, Plumlee said. It is focusing its business in Baltimore and Montgomery counties.

Kear IT has 15 employees and is finalizing a $4 million contract to provide IT services to members of a nonprofits association in Washington, D.C., Kear said.