Sponsored By

MSP M&A: IT Solutions Buys SecurElementMSP M&A: IT Solutions Buys SecurElement

The acquisition is a natural pairing of the two companies’ complementary services.

Edward Gately

August 22, 2019

2 Min Read
Business handshake
IT services and consulting firm NexusTek (No. 33 on the 2018 Channel Futures MSP 501) has completed three more acquisitions this year — Cal Net Technology Group, Syndeo Technologies and Decision Consultants (DCI). The purchases in Southern California, Arizona and New England, respectively, mark five for NexusTek this year and eight in four years, each of which "directly benefits customers by augmenting the company’s core competencies and ability to execute best practices." NexusTek is backed by Abry Partners, a private-equity firm with more than $77 billion of leveraged transactions under its belt.Shutterstock

IT Solutions Consulting (ITS), No. 120 on our 2019 MSP 501 list, has acquired fellow MSP SecurElement Infrastructure Solutions.

ITS gets SecurElement’s assets, including customer contracts, and has made an investment in updating the ITS headquarters in Fort Washington, Pennsylvania, to accommodate the expansion. Terms of the acquisition weren’t disclosed.

ITS said the acquisition is a natural pairing of the two companies’ complementary services and will provide immediate opportunities for clients to explore several alternatives in managed cloud, security and digital workplace solutions with an emphasis on Microsoft Office 365, SharePoint and Teams.

Garrett Graney, ITS president, tells us the state of the business has been strong and “we were in a financially sound position to make the investment.”

ITS' Garrett Graney

ITS’ Garrett Graney

“We were looking to expand our MSP footprint in the broader mid-Atlantic region,” he said. “ITS and SecurElement were friendly competitors prior to the acquisition.”

This is the latest in a growing trend of M&A among MSPs where companies are combining forces to “overcome increasing cyberthreats, more complex client environments, growing support needs and qualified staffing shortages,” Graney said.

“There will be a larger service desk with a deeper skill set, which provides improved service levels and more consistent strategic guidance for long-term success with the client base,” he said. “The acquisition increases our client base in medical, professional services and further expands our legal, financial services and manufacturing client footprint.”

“SecurElement is very excited to join one of the largest locally based MSPs in the region,” said Patrick Baird, SecurElement’s CEO. “Becoming part of an employee-owned business will provide long-term benefits for our employees, our customers and our partners alike.”

This is the fourth and largest acquisition in ITS’ history, and the first since the company became a 100% employee-owned business in 2012. ITS will leverage SecurElement’s expertise in security and cloud hosting as they continue expansion plans in Greater Philadelphia and the mid-Atlantic.

Read more about:

MSPs

About the Author(s)

Edward Gately

Senior News Editor, Channel Futures

As news editor, Edward Gately covers cybersecurity, new channel programs and program changes, M&A and other IT channel trends. Prior to Informa, he spent 26 years as a newspaper journalist in Texas, Louisiana and Arizona.

Free Newsletters for the Channel
Register for Your Free Newsletter Now

You May Also Like