September 22, 2021
Upstack, the cloud and internet infrastructure selling agent and sourcing platform, just announced two new agent acquisitions.
MOC4 Consulting, idea Communications Group and their owners have joined the Upstack team. Both financially undisclosed transactions fit into Upstack’s strategy of purchasing high-performing tech consultancies. The agreements allow the agencies’ owners to remain in business while accessing more resources and support and ultimately earning equity.
Idea co-founders David Garrick and Frank Ferdowsian said they rebuffed multiple suitors who asked them to retire from the business.
Upstack’s David Garrick
“Our customers are our friends; our relationships extend beyond business. We cannot in good conscience take a payout, walk away and leave our customers in the hands of someone else that will not offer the same level of service we provide,” said Ferdowsian. “Upstack was different. They shared our customer-first passion and didn’t ask us to walk away; they wanted to help grow our customer relationships further.”
Idea has been in the channel for almost 20 years. Garrick and Ferdowsian formed the agency in 2002 after Qwest laid them off. They quickly found that they relished the opportunity to provide a more vendor-neutral approach to IT sales.
“When layoffs happen, normally, people look for jobs,” said Ferdowsian. “We looked at each other, bought two laptops and started our own business.”
Upstack’s Christopher Trapp
Upstack CEO Christopher Trapp praised Garrick and Ferdowsian’s reputation for customer service.
“David and Frank built a thriving business on doing what’s right for their customers,” Trapp said. “Their ‘customers-before-company’ mindset backed by tenured experience designing complex network, communications and IT solutions will help drive Upstack’s success going forward.”
Idea operates out of the Denver area.
MOC4 consulting has played in the channel for a significantly shorter time. Founder Daniel Mocny started the Bridgepointe Technologies partner in 2014. The former college baseball player liked the independence that a technology consulting job provides. He ultimately surpassed 300 customers and began considering how he could expand the company.
Upstack’s Daniel Mocny
“I explored the conventional routes of hiring a support team, outsourcing to a third-party for back-office support, or combining resources with another agency in the space,” Mocny said. “That’s when I heard about the opportunity to join Upstack.”
MOC4 focused on secure networking.
“In addition to his long experience delivering complex multivendor network solutions, Daniel’s competitive spirit and team-first mentality are sure to drive growth for the entire Upstack team,” Trapp said.
Mocny works out of Irvine, California.
The Upstack Plan
New York-based Upstack drew the attention of the channel earlier in April when it announced a $50 million private equity investment from Berkshire Partners. Trapp promised about a dozen agent acquisitions throughout the year, and his promise has come true. Upstack has announced a continuous stream of agent acquisitions, most recently technology infrastructure advisory firm CloudAdvise.
Agents have taken Upstack’s offer for a variety of reasons. Some, like PacTech Partners, were looking for additional resources and connections to scale upward. Others, like Phoenix-based consultancy LanYap Networks, wanted a buyer to take care of their back-office operations to let them focus on their core business. Moreover, the agent owners are gaining equity in Upstack in the event of a future exit.
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