mindSHIFT Acquired After Cloud Services Marketing Push
Less than six months after mindSHIFT Technologies began promoting itself as a cloud services provider, the well-known MSP has been acquired by Best Buy for $167 million. On the one hand, perhaps the cloud services push helped mindSHIFT to attract more customers and an investor. But on the other hand, check Best Buy’s official announcement and you’ll notice that most of the mindSHIFT news focuses on managed services.
According to the official announcement, mindSHIFT is “the nation’s leading managed service provider (MSP) for small and mid-sized businesses, for $167 million. The transaction will help accelerate Best Buy’s growth in the small and mid-sized business IT services category. mindSHIFT provides cloud services, data center services and professional services to more than 5,400 clients and 25,000 managed desktops in key markets throughout the United States.”
Translation: Best Buy seems to be signaling that cloud services are part of a broader managed services solution set. The idea is for small businesses to pay a predictable monthly fee for all IT services — everything from remote PC monitoring and maintenance to hosted email and virtual desktop infrastructure (VDI).
Around the time mindSHIFT began promoting itself as a cloud services provider, it sounds like the MSP also hired The Bank Street Group to explore new funding options. It sounds like mindSHIFT’s legacy investors were looking for an exit strategy — but I also believe mindSHIFT was on firm financial footing and in growth mode ahead of the Best Buy deal.