MSP M&A: IT Solutions Buys SecurElement
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.”
“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.