Mother Network Guardians, a Chicago-based IT service provider, has acquired Decisions Systems Plus Inc. (DSPI) to potentially grow its SMB customer base. Cogent Growth Partners, LLC -- a merger and acquisition advisory firm -- advised Mother Network on the deal, which highlights continued consolidation in the MSP and VAR markets.
Mother Network and DSPI both target SMBs. DSPI focuses on telephony managed services. DSPI's cloud computing model is affordable, secure and gives SMBs instant access to international applications and data, the company claims. Meanwhile, Mother Network has focused exclusively on managed services since 2004, providing SMBs with 24x7 support "without the need for a coffee break or vacation time or an unexpected sick day."
Meanwhile, Cogent Growth Partners seems to be gaining momentum as a buy-side advisor within the managed services M&A market. According to a prepared statement from Mother Network Guardians CEO David Davenport:
"Cogent was instrumental in the entire acquisition lifecycle. They worked with us from initial introduction all the way to operational integration after the close which they continue to be very involved in. Cogent's hands-on presence increased our confidence throughout the entire process."After an M&A deal is complete, Cogent Managing Partner David S. Schafran or another Cogent representative remains engaged in during the integration process, helping the two companies to marry their business processes and managed services platforms.
Also of note, M&A chatter was very loud at the recent TruMethods Schnizzfest conference in Philadelphia, which attracted roughly 150 MSPs. Multiple MSPs at the conference said industry consolidation will remain the norm for months to come, and mindSHIFT CEO Paul Chisholm offered some M&A guidance to attendees. mindSHIFT has acquired nearly a dozen MSP-centric companies in recent years.
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