Regional Managed Services Acquisition in Pennsylvania
Say hello to the eighth managed services acquisition MSPmentor has spotted this year. The latest deal involves Fraser Advanced Information Systems acquiring PennLantic Corp., a managed services provider in Harrisburg, Pa. The deal also has a side story, involving Zygoquest Group — another M&A advisory firm that's now serving the channel.
Fraser Advanced Information Systems, specializes in office automation and document management solutions — everything from multi-function printers to workflow and content management software. The company has served Pennsylvania, New Jersey and Delaware customers for more than 40 years. PennLantic offers its own branded Eye-T managed services for remote monitoring and systems management. Financial terms of the deal were not disclosed but we're working to determine how many employees were involved in the deal. We're also poking around to see how Fraser potentially plans to push deeper into managed services.
This is the eighth managed services-related M&A deal MSPmentor has spotted so far in 2011. The other deals included:
- Netgain acquiring DLP Technologies
- Microholdings US acquiring ConnectIT Networks Inc.
- Konica Minolta acquiring All Covered, a national MSP that plans continued acquisitions
- mindSHIFT acquiring Alpheon, the health care-focused MSP
- Printelligent acquiring DirectPointe’s managed print services business
- Fully Managed acquiring HIT Business Solutions as part of a Canadian expansion plan
MSP M&A Consultants
A growing number of boutique consulting firms seem to be advising VARs and MSPs on potential mergers and acquisitions. Zygoquest Group, for one, advised Fraser on the PennLantic deal.
Zygoquest owner Mike Dudek is an attorney who offers consulting, valuation and due diligence services to buyers and sellers of companies. Dudek previously was VP of acquisitions at IKON Office Solutions, which Ricoh ultimately acquired.
Additional M&A advisors on MSP deals include:
- Cogent Growth Partners, launched by several former MSPs
- Martin Wolf Securities, which has advised on hundreds of IT services deals for more than decade
- Weaver & Associates, launched by MSPAlliance President Charles Weaver
Meanwhile, more M&A deals may surface soon. MSPmentor is aware of at least three pending deals that may be announced within two weeks or so. We're working to confirm the facts now.
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