MSP M&A Roundup: Valeo Networks, GoodSuite, ACCSCIENT and More
M&A activity continues to thrive, even with whispers of a potential recession looming.
September 29, 2022
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GoTo recently announced that it had completed the deal to acquire cloud-based device management provider Miradore.
The close of this deal builds on several recent updates from GoTo’s IT support and management portfolio, including new Remote Management and Monitoring (RMM) capabilities and an enhanced GoTo Resolve solution built specifically for Managed Service Providers (MSPs).
The Miradore deal announced earlier this year, will bring additional mobile device management (MDM) capabilities to the GoTo portfolio and GoTo Resolve IT support platform. Once fully integrated, the combination of GoTo Resolve and Miradore will give customers the ability to manage any device, from any location, through a single application.
Atera recently announced a new integration with Malwarebytes, a provider of real-time cyber protection. Atera is the first remote management company to offer an integration that automates licensing and provisioning of the Malwarebytes OneView platform. This partnership plays an integral role for Atera to provide streamlined and maximized security operations for its community of more than 10,000 customers across 105 countries.
“With workplaces continuing to evolve and employees working from anywhere in the world, the risk of ransomware attacks continues to climb. At Atera, we are committed to providing a platform with unmatched security and transparency for our customers,” said Gil Pekelman, CEO of Atera. “An integration with Malwarebytes has been one of the most requested by our users, and we’re thrilled to roll this out for our customers so they can easily install and manage their endpoint security solutions.”
This integration will include the option for users to deploy Malwarebytes’ products directly through Atera. Customers will gain access to Malwarebytes’ OneView platform, enabling license management, detailed, value-driven reporting that can be shared with their end users, and customer site administration. The integration will include incident response, endpoint protection, and endpoint protection and response.
VC3 recently acquired Accent Computer Solutions, a leading managed IT services, cybersecurity, and consulting provider in California. The joining of these two established firms expands the VC3 solution portfolio to include municipal and commercial clients in California.
This partnership increases the depth and breadth of capabilities in both firms while empowering both Accent Computer Solutions and VC3 to provide more tailored services to their clients.
“Accent and VC3 have been collaborating for many years and the organizations are a natural fit for each other. Each team has complementary strengths, and joining forces will make us even stronger together,” said Marty Kaufman, Founder and President of Accent Computer Solutions. “Like Accent, VC3 is focused on helping organizations achieve their goals without technology getting in the way. This partnership will create more opportunities for Accent’s clients, employees, and everyone associated with us. I’m excited to remain involved with Accent during this transition before eventually moving into a mergers and acquisitions role.”
Private equity firm Tower Arch Capital acquired MSP Intelligent Technical Solutions (ITS), which provides managed IT, cloud, cybersecurity, VoIP phone and fiber internet services to SMBs throughout the United States. Tower Arch didn’t say how much it’s paying for ITS; however, the investment completes a recapitalization with ITS’ founding management team.
This is the first MSP acquisition for Utah-based Tower Arch, whose portfolio includes everything from industrial services to consumer services. The deal will not be its last foray into the MSP market, the company said.
“We’ve had other kinds of IT services-related investments, but this is our first pure-play MSP investment. Our goal would be to expand our footprint in the MSP space through ITS. We want to put more capital work here by investing more money into ITS for them to go and buy other companies and build their service offerings. But, yes, the goal is to expand to other MSPs.”
Meriplex recently bought managed service provider CPI Solutions, making it the fifth acquisition for the company this year.
For more than 30 years, CPI Solutions has been an IT and cybersecurity MSP for many businesses throughout Southern California. They provide custom solutions tailored to their client’s needs. It allows them to maximize the role IT plays in their day-to-day business, Meriplex officials said.
This acquisition also allows Meriplex, a Channel Futures MSP 501 winner, to expand further into the automotive industry. CPI provides thorough risk assessments, IT solutions and technical expertise. In addition, Meriplex said CPI brings “highly talented and engaged individuals,” system automation expertise and vertical success in the industry.
Longtime solution and technology provider Vology has been sold. ATSG, which has been purchasing services-based companies and MSPs, was cited as the buyer. ATSG was likely attracted by Vology’s robust cloud practice.
Clearwater, Florida-based Vology is a managed IT, security and cloud services provider. Its leadership says the company positions organizations for growth by “empowering digital transformation and delivering custom solutions.” The company was last known to be owned by a private equity firm. Currently, Vology is led by Tom York, the company’s CEO and a 31-year veteran of IBM. Walt Walker leads the firm’s office of innovation and cloud practice.
Acquiring a strong cloud-managed service could be driving many MSP acquisitions as of late. In the last two years, the number of deals has increased substantially. For example, companies such as Thrive and Meriplex have acquired other MSPs within months, if not weeks, of each other.
MSP Nexus IT recently merged with Salt Lake City-based IT services provider Intelitechs. The move adds to both companies’ IT services offerings and expands their leadership teams. The combined company will have an aggressive five-year growth strategy, officials said.
Earl Foote is the CEO and founder of Nexus IT. He will continue in his role, while Intelitechs’ co-founders Jake Hiller and Eric Sessions will join Foote as key executives.
“When I began the search for a strategic partner, the most important component of my decision revolved around finding a company that shared Nexus IT’s mission, vision and values that we’ve committed to for the past 24 years,” said Foote. “We found exactly that in Intelitechs. As a result, we are so excited to continue building our culture of integrity that also prioritizes best-in-class client services.”
Private investment firms Centerbridge Partners and Bridgeport Partners have acquired Computer Services Inc. (CSI), a provider of end-to-end financial and regulatory technology (regtech) solutions. The cost is $1.6 billion, or $58 per share. CSI’s board of directors unanimously approved by the agreement.
The deal should close in the fourth quarter of 2022.
“After a thorough strategic review, the CSI board of directors is very pleased to announce this transaction and believes it is in the best interests of our shareholders,” Powless said. “Upon completion of the transaction, CSI intends to continue operating under the leadership of CEO David Culbertson and the CSI leadership team.”
With headquarters in Paducah, Kentucky, CSI has a long history of delivering end-to-end solutions. It serves nearly 2,600 customers in the U.S. and in 30 other countries.
Xceptional acquired Altitude Integrations, a Colorado based managed service provider. This was Xceptional’s first acquisition since announcing a strategic growth plan in 2021.
Altitude Integrations is headquartered in Boulder, Colorado, and is an innovative IT managed services provider. The organization provides a portfolio of managed IT and cloud services to dozens of clients across various industries, throughout Colorado and surrounding states. The organization has 10 employees and has experienced solid growth over the last few years.
This acquisition puts into motion the hyper-growth plans that were announced at the end of 2021. The combination of Altitude Integrations and Xceptional will be able to serve clients in a greater capacity, not only through more technicians and engineers, but also through more service and software offerings.
Logicalis recently acquired Q Associates, a UK-based provider of IT consultancy and advisory services around data management, data protection, compliance and information security.
The acquisition is meant to add complementary capabilities to Logicalis UKI’s core expertise in digital infrastructure, networking and cloud, enabling a broader portfolio of solutions and services for customers operating in the digital space. Q Associates provides technology solutions to UK universities and research councils, government security services and home office departments and commercial clients across major industry sectors, including finance, legal, transportation and energy.
Q Associates holds advanced technical accreditations with many of the World’s leading technology vendors, including Microsoft, NetApp, Oracle, IBM and Rubrik.
This year marks the first foray into M&A for The 20 MSP. Earlier in the year, the Texas-based company snapped up its first shop, and is now set to acquire six new MSPs.
The companies include: Your IT Group, Florida; INGRAIN IT, Wisconsin; Peterson Technology Group, Wisconsin; Monroy IT Services, Texas; Network Management Solutions, California; and Cirrus Technologies, Ohio.
“This is an incredibly exciting time for both organizations, and another step forward in The 20’s mission to build the best national MSP platform out there,” said Tim Conkle, CEO of The 20 MSP. “These are people-first companies just like us, which makes this not only a great fit operationally, but culturally too. I know firsthand that when talented, like minded people come together, great things happen. It’s my pleasure and privilege to welcome these companies to The 20 family.”
The 20 MSP expects these acquisitions to expand the company’s national footprint. It is also part of a robust growth plan that is in keeping with the still-hot consolidation activity across the MSP industry. The 20 MSP is preparing for more acquisitions in the coming months.
ACCSCIENT recently acquired Vyom Group (comprising of Vyom Labs, Cogniwize, and Omnepresent) and DxSherpa, through its parent entity. This acquisition will expand ACCSCIENT’s global presence to over 3,000 technical resources in addition to expanding its reach into the markets of Asia, Europe, the Middle East, and Australia.
ACCSCIENT’s aim is to expand the breadth of its capabilities across the entire digital ecosystem as both a provider of services and software solutions.
The company’s technical teams work from multiple global locations, allowing ACCSCIENT to provide its clients with leading practitioners, agile delivery models, and optimized economics to ensure their digital business outcomes are achieved.
GoodSuite has acquired Strata IT. The acquisition expands GoodSuite’s range of managed IT services to a broader business audience and new regions. GoodSuite’s managed IT services include help desk, onsite, cybersecurity, disaster recovery, cloud migration, VoIP, and other services.
The integration of Strata IT’s existing business and customer base into GoodSuite’s operations highlights the company’s strategic evolution from an office copier company to an enterprise-level business services provider, offering multifunction printers and copiers, IT services, managed print services, digital signage, collaboration, and interactive display systems, VoIP services, and other essential business systems.
“The Strata IT acquisition supports our strategic vision to become an enterprise-level IT services provider, without impacting our managed print and other services programs,” said Dan Strull, CEO of GoodSuite. “The integration of Strata IT’s experienced team, together with GoodSuite’s award-winning customer service teams and reliable infrastructure allows us to bring a boutique level of service and support to a broader customer base. We’re excited about the future as we continue GoodSuite’s evolution into a formidable business services provider through acquisitions and organic growth.”
Magna5 acquired Interphase Systems, a Philadelphia-based managed IT services provider servicing the life sciences and financial services sectors. This is the fifth managed services acquisition for Magna5.
It is designed to further strengthen the firm’s position as a competitive player in the Northeast and Mid-Atlantic regions. The combined company will offer a wide range of managed IT services including network management, cybersecurity, data recovery and cloud services.
The demand for real-time cybersecurity protection, data backup/recovery, centralized network monitoring, cloud hosting and 24/7 help desk support combined with Magna5’s superior service offerings have the company on pace to record organic growth of over 20% year over year.
Valeo Networks recently acquired Alura Business Solutions. Financial terms were not released. Alura Business Solutions was founded by former Conshohocken resident Jason Derstine.
Alura Business Solutions provides IT solutions for organizations in a number of industries, including manufacturing, non-profit, and healthcare. The company will continue its normal operations out of its location in Plymouth Meeting.
“Our efforts to scale Valeo continues its forward momentum. The acquisition of Alura gives us a robust presence in the Northeast and truly expands our national footprint,” said Travis Mack, CEO, Valeo Networks. “We are excited to have Alura join our team of companies.”
Valeo Networks recently acquired Alura Business Solutions. Financial terms were not released. Alura Business Solutions was founded by former Conshohocken resident Jason Derstine.
Alura Business Solutions provides IT solutions for organizations in a number of industries, including manufacturing, non-profit, and healthcare. The company will continue its normal operations out of its location in Plymouth Meeting.
“Our efforts to scale Valeo continues its forward momentum. The acquisition of Alura gives us a robust presence in the Northeast and truly expands our national footprint,” said Travis Mack, CEO, Valeo Networks. “We are excited to have Alura join our team of companies.”
As we face into the winds of Q4, M&A activity appears to still be hot, despite whispers of a slowdown.
Private equity firms and other investors are seeing the value of the channel like never before. Indeed, 2021 was the most active year for M&A in the history of such transactions. 2022 was no exception.
However, it will be interesting to see what happens as organizations analyze their businesses headed into 2023. Will mergers and acquisitions continue to flourish? Or will providers pump the brakes?
Deals over the last few months have spanned the gamut, from names like Valeo and Magna5 to players such as GoodSuite and GoTo.
Scroll through the images above to see a sampling of the latest mergers and acquisitions and investment deals in the IT/MSP channel in 2022.
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