Purchase of Convergent helps tech integrator Avtex

The Pohlad-family-owned Avtex Solutions, a business technology integrator, this week bought neighboring Convergent, a smaller player known for its expertise in integrating voice, computer and phone systems.

"The missing piece was around unified communications that support the mobility of the workforce at home, the office, anywhere," said Keith Rachey, chief strategy officer of the combined operation.

The combined company, which will be called Avtex, will employ about 220 people and will post consolidated revenue north of $45 million this year from more than 600 customers, ranging from General Mills and Medtronic to small businesses.

The Avtex bet is that the merged, Bloomington-based outfit can provide a more economical integrated service than separate vendors of video, voice and conference capabilities through personal computing systems.

"We think this should be one-plus-one-equals-five," said Rachey. "In this market we're the only provider that has the breadth of offerings through Microsoft and [Avtex's competency] in call-center solutions. We provide services around other people's products and we build our own product to ride on top of other core platforms. ... We think we can triple the revenue over the next five years through acquisitions and organic growth. Businesses are really looking for these types of integrated solutions. We're already adding people, particularly in Milwaukee, Des Moines, Cincinnati and Kansas City."

The Pohlad organization, founded around Minnesota banking and bottling operations by the late Carl Pohlad a half-century ago, employs about 3,500 people in financial services, commercial real estate, the Minnesota Twins, auto and technology businesses in 40 cities.

Mr. Taft goes to Washington

Taft, who oversees 2,200 financial consultants, will serve in interesting times: The new financial reform law calls on regulators to draft about 200 rules.

Taft's top priority is a uniform "fiduciary standard of care" among brokers, registered investment advisers and other licensed financial professionals trusted with advising clients and managing their money.

"Congress said to the SEC, 'Study this and report back in January 2011 and write a new standard,"' Taft said. "And we support a uniform standard for brokers, financial advisers, wherever they work. The devil is in the details. We just want to make sure that it doesn't restrict investor access to the wide range of products and services. You can't restrict investor choice."

The rap on the traditional brokerage industry is that the broker's first obligation was to the firm, although good brokers always acted in the long-term interest of clients, as do good financial planners and investment advisers. Still, the public doesn't understand the different titles and legal distinctions. Brokers, for example, are held to a "suitability standard," which means they are required to consider whether a particular investment is suitable for the client. Certified financial planners are held to a higher "fiduciary standard" that requires them to place the client's interests before all other interests.

Taft, who was in Washington this week and appeared on CNBC's "Squawk Box," works for RBC Financial, Canada's biggest financial complex, which has big U.S. operations. RBC avoided the 2007-08 Wall Street meltdown and bailout.

King steps down at Merrill

Doug King, a 25-year Merrill Lynch veteran who has headed the Minneapolis office since 2004 and all Minnesota operations since 2009, has stepped down for unspecified reasons. King, who is considering options within Merrill, will be replaced soon, said Selena Morris, a Bank of America spokeswoman.

King had success in building up the ranks of productive brokers, partly by recruiting them from other firms to the several Minneapolis-area offices operated by Merrill.

The trade talk suggests that King may have run afoul of some powerful, high-buck Merrill brokers. But nobody had anything to say publicly.

King, who was named head of all Bank America/Merrill operations last year, has been active in Minneapolis civic and charitable circles.