What Does the ConnectWise Buyout Say About the MSP Market?

… Continuum and now ConnectWise, in addition to Barracuda and other providers. Mature markets generally count three, maybe four big leaders that own 75 or 80 percent of market share, leaving niche players and new entrants to squabble over the remainder. So wondering if Thoma will consolidate its assets isn’t unreasonable.

But George and Voccola aren’t so sure that’s a move we’ll see anytime soon. Voccola predicts Thoma is betting on the sector, not on individual providers, similar in spirit to a mutual fund for the MSP business-management solution space.

“[Let’s say hypothetically] we really like the medical marijuana space. I might buy 10 companies in it because the market’s so big, even the ones that lose are still gonna do well,” Voccola explains, with a caveat. “But I’m just one dude. If I had all the answers, I’d be running Thoma Bravo.”

George points out Thoma doesn’t have a history of buying and consolidating assets and insists that each investment can stand on its own. After all, each company is run out of separate funds, with separate boards, limited partners and management teams.

“We have separate everything,” says George. “I know the CEOs of all these companies. We just make good rational business decisions for our own businesses and don’t really give any credence to the fact that we happen to go to the same family reunion.”