After 17 years as co-owner and vice president of sales and marketing,
Art Flater has sold his portion of Waukesha-based managed service provider
Central Office Systems and retired.
In mid-August, the company announced Flater sold his ownership interest to
Thomas Rosecky, who has served as director of operations since April of 2024. Thomas will add co-owner to his title, joining his dad
Chris Rosecky in the now family-owned business.
Flater’s exit from the company included the sale of both the business and its assets to Thomas. Flater did not disclose details of the sale, but noted it was a “seven-figure deal.”
Flater began his time with Central Office Systems (COS) in 1991 in the sales division. In 1996, Flater left COS and worked a short stint at
Konica Business Technologies before being offered equity in a copier machine business called
Office Machine Showcase, led by
John Kubichek. Flater and Kubichek combined two different copier dealers to create
Kubichek Office Products Group in 1997. Flater and Kubichek sold the dealership 10 years later to Chicago-based
Impact Networking, kickstarting Flater’s plan to buy COS with Chris. In late 2007, over a "taco lunch," Flater and Chris decided to purchase COS together, Flater said.
For 17 years following, Flater and Chris led the company, Flater as vice president of sales and Chris as president.
“I was president at first, but in 2010, I asked Chris to take over,” Flater said. “I was a better VP of sales, and Chris was definitely a better executive and president, and it was obvious to me.”
In his time at Central Office Systems, Flater spearheaded two MSP acquisitions as well as the sale of COS’ copier division to Brookfield-based
James Imaging Systems in 2021. Central Office Systems now exists as an MSP (managed service provider) firm primarily, a transition in which Flater played a key role as the company shifted from printer sales to technology and low voltage services.
The company’s three acquisitions – the acquisition of Pewaukee-based
Jansen & Co.’s IT division in 2015, the purchase of Milwaukee-based
Attivo Technologies in 2018, and the sale of COS’ copier division to James Imaging Systems – helped curate COS’ current catalog, which consists of roughly 70% MSP services and 30% low voltage services, according to Thomas.
The acquisition of Jansen’s IT department marked the beginning of Central Office Systems’ transition into the MSP industry. Jansen sold the majority of its business to Naperville, Illinois-based MSP Sikich. Sikich, however, did not acquire the IT sector of the company.
“We did not acquire the company so much as we acquired its clients through the new employee we hired,” Flater said.
[caption id="attachment_448898" align="alignleft" width="260"]
Art Flater[/caption]
With a new IT employee under its belt, COS began focusing on expanding its technology services. In 2018, three years after the Jansen acquisition,
COS purchased Milwaukee-based Attivo Technologies, marking the largest acquisition made by COS to date. Attivo Technologies closed its Milwaukee office and moved into Central Office Systems’ corporate office and distribution center. At the time, the combined firms employed between 40 and 50 people.
Between 2018 and 2021, COS transitioned its business and readied itself to become a provider of IT services exclusively. The transition was complete after the deal between COS and James Imaging Systems closed.
A few key contributors to Central Office Systems’ success over the years include establishing recurring revenue, being happy but not satisfied with business, offering quality customer service and remaining competitive with sales, said Flater.
“The more recurring or subscription-type revenue you have, the better off your company is because you don’t have to start from zero at the beginning of each month,” he said.
Client demand for copier maintenance led COS to expand beyond sales. Flater's decision to add repair, cybersecurity and IT services opened the door to managed service contracts that helped provide steady recurring revenue.
Flater also advised business leaders to be happy with the status of their business rather than waiting for success to feel accomplished.
“The most successful people in the world are happy,” Flater said. “Don’t make your happiness contingent upon whatever happens when you get to the gate."
Further, Flater noted that a focus on quality customer service helped set COS apart from its competitors. Phone calls may no longer dominate business communication the way they once did, but Flater and Chris kept them central to their business model. COS still maintains its 24/7 help desk line.
“(Answering the phone) shouldn’t have been what made us great, but it did,” he said.
Lastly, outperforming competitors in an uphill battle will help a business get ahead and stay ahead, Flater said.
“The race never changes on the flat surface,” he said.
In his retirement, Flater said he plans to spend more time with his children, travel with his wife and improve his golf game.
Central Office Systems is planning to continue its growth by doubling its revenue over the next four years. Taking on additional clients in both its MSP and low voltage divisions as well as investing in its marketing and upskilling efforts will remain priorities of the business throughout the ownership transition, Thomas said.
