September 29, 2021
MSP Corp Investments has $35 million in new capital to accelerate its acquisitions of – and partnerships with – MSPs across Canada.
MSP Corp.’s Jason Dacosta
“Our mission from the very beginning has been to build the most recognized network of MSPs in the information technology sector throughout Canada,” said Jason Dacosta, co-founder and president of MSP Corp. “This funding round will help us achieve that vision by allowing us to extend our complete toolset of resources and support to a growing number of MSPs as we continue to scale via acquisitions.”
Hard Work Paying Off
MSP Corp seeks to acquire managed service providers and allow owners to smoothly cash out on their hard work, while preserving their legacy and to grow among MSP Corp’s network. The firm has more than $50 million in capitalization.
Keep up with the latest channel-impacting mergers and acquisitions in our M&A roundup.
“We look to acquire and partner with MSPs that have well-rounded cultures, as we value our MSP partners as family,” said Ravi Ramharak, co-founder and managing director of mergers and acquisitions at MSP Corp. “During the evaluation process, in addition to other factors, we consider an MSP’s operating profit, recurring revenue, customer and revenue retention, growth and customer concentration. We can typically close a transaction within a maximum of 90 days.”
Capital Transaction Allows Access
Among other benefits, acquired MSPs gain access to a full stack of solutions. This includes email, cybersecurity, virus and malware, ticketing, support systems, password management and backup solutions. Unlike some other buyout firms, MSP Corp owners have been working in IT since the early 2000s. They have also built multiple IT businesses.
MSP Corp offers multiple different models and payment options for MSP owners. These are options for those seeking to retire, cash out a portion of their business, or simply diversify future risk. Compelling compensation structures provide short-term and long-term incentives for owners, the company said.
Unless instructed by MSP owners, MSP Corp does not roll up companies by default; the firm says it believes in operational autonomy.
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