MSPs Continue Mergers, Acquisitions

MSPs Continue Mergers, Acquisitions

managed_services_mergersMSPmentor's M&A Tracker has spotted two managed services-related acquisitions in recent days. The first involves Safe Systems Inc. (an MSPmentor 100 company) and the second involves Deluxe Corp.’s Hostopia unit. Here's a closer look at each deal.

Safe Systems, ranked No. 15 on the MSPmentor 100, inked a definitive agreement to purchase the network services division of Total Data Services Inc. Safe Systems offers remote monitoring, preventive maintenance, remediation and reporting for servers as well as other devices. It also offers hosted Exchange, patch management, and anti-virus as part of its managed services line. The company specializes in community financial institutions.

Total Data Services also targets the financial sector. When the deal closes, Safe Systems will absorb Total Data Services’ business lines including network infrastructure design and implementation, Internet connectivity solutions, disaster recovery solutions, desktop support, security assessment services, and network cabling. Financial terms were not disclosed.

Deluxe, meanwhile, said its Hostopia unit has entered an agreement to purchase elements of’s hosting customer base. The deal, expected to close in late July 2009, will let Hostopia take on more than 80,000 small business subscribers of shared Web hosting, hosted e-commerce storage and managed e-mail services among other services, according to Deluxe.

In addition, Hostopia completed the acquisition of MerchEngines, a search engine marketing firm. The two Hostopia acquisitions cost $30 million.

Deluxe, perhaps best know for its check printing business, purchased Hostopia last year.

SecureWorks closes VeriSign Deal

In another transaction last week, SecureWorks Inc. closed its purchase of VeriSign Inc.’s managed security services business. Word of the now-done deal surfaced in May 2009.

Contributing blogger John Moore covers Master MSPs, Web hosts and emerging opportunities. Follow MSPmentor via RSS; Facebook;; and Twitter. And sign up for our Enewsletter; Webcasts and Resource Center.
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