MSP Mergers, Acquisitions: TUC Launches $15M Fund, Buys Protek
TUC Brands (The Utility Company) has launched a $15 million fund, called TUC II, to acquire managed services providers (MSPs). The fund’s first target: Protek Corp., an MSP in Ontario that TUC purchased this week. It sounds like TUC Brands CEO Mark Scott is positioning his company as an MSP aggregator, buying up IT service providers as a Canadian alternative to mindSHIFT (owned by Best Buy) and All Covered (owned by Konica Minolta). Among TUC’s targets: Top performing MSPs that participate in Ingram Micro VTN (Venture Tech Network), among other IT service provider communities.
Earlier today, TUC confirmed the Protek buyout. That $10 million (annual revenues) company, launched in 1983, is well-known within VTN; Protek Principal Peter McMahon is a past-president of VTN Canada. Scott, meanwhile, attended an Ingram Micro VTN conference in Colorado Springs, Colo., earlier this year — potentially analyzing the membership for buyout targets.
TUC on Aug. 3 launched a capital division, led by Stephan May, to drive the M&A activity. Potential targets include Canadian MSPs with revenues of between $5 million and $10 million.
Scott has continually evolved his approach to the managed services market. The former CEO of N-able Technologies, Scott originally positioned The Utility Company as a franchisor that empowered regional VARs and MSPs. Then he launched MSPXchange to drive M&A activity. TUC Capital essentially is a rebranded, next-generation version of MSPXchange.