Canpango, a customer relationship management services software company in Milwaukee, is being shut down as part of cost-cutting measures by its parent company, South Carolina-based ScanSource Inc.
ScanSource (Nasdaq: SCSC) acquired Canpango in 2018 to lead its Salesforce implementation and consulting business. The transaction price was not disclosed.
At the time of the acquisition, Canpango, based in Milwaukee’s 3rd Ward on Chicago Street, had 70 employees with offices in Chicago, New York, London and South Africa. The company was co-founded by Matt Lautz, the former co-founder and CEO of Corvisa, a cloud communications company in Milwaukee that was sold in 2016 to ShoreTel, a vendor partner of ScanSource.
ScanSource is planning to replace Canpango with CRM offerings from third-party companies. ScanSource expects to record a pre-tax non-cash charge of approximately $2 million from winding down Canpango.
The $30 million expense reduction plan by ScanSource impacts a total of 200 employees, who will be let go by the end of September. ScanSource reported it is facing a 21% net sales decline due to Covid-19. View the story here.