https://www.channelfutures.com/wp-content/themes/channelfutures_child/assets/images/logo/footer-new-logo.png
  • Home
  • Technologies
    • Back
    • Analytics
    • Artificial Intelligence
    • Cloud
    • Data Centers
    • Desktop
    • IoT
    • Mobility
    • Networking
    • Open Source
    • RMM/PSA
    • Security
    • Virtualization
    • Voice/Connectivity
  • Strategy
    • Back
    • Best Practices
    • Business Models
    • Channel 101
    • Channel Programs
    • Channel Research
    • Digital Transformation
    • Diversity & Inclusion
    • Leadership
    • Mergers and Acquisitions
    • Sales & Marketing
    • Specialty Practices
  • MSSP Insider
    • Back
    • Business of Security
    • Cloud and Edge
    • Endpoint
    • Network
    • People and Careers
    • Training and Policies
  • MSP 501
    • Back
    • 2020 MSP 501 Rankings
    • 2020 Hot 101 Rankings
    • 2020 MSP 501 Report
  • Intelligence
    • Back
    • Our Sponsors
    • From the Industry
    • Content Resources
    • COVID-19 Partner Help
    • Galleries
    • Podcasts
    • Reports
    • Videos
    • Webinars
    • White Papers
  • EMEA
  • Awards
    • Back
    • Excellence in Digital Services
    • 2020 MSP 501
    • Top Gun 51
  • Events
    • Back
    • CP Conference & Expo
    • Channel Partners Evolution
    • Channel Evolution Europe
    • Channel Partners Event Coverage
    • Webinars
  • Channel Mentor
    • Back
    • Channel Market Intelligence
    • Channel Educational Series
Channel Futures
  • NEWSLETTER
  • Home
  • Technologies
    • Back
    • Analytics
    • Artificial Intelligence
    • Cloud
    • Data Centers
    • Desktop
    • IoT
    • Mobility
    • Networking
    • Open Source
    • RMM/PSA
    • Security
    • Virtualization
    • Voice/Connectivity
  • Strategy
    • Back
    • Best Practices
    • Business Models
    • Channel 101
    • Channel Programs
    • Channel Research
    • Digital Transformation
    • Diversity & Inclusion
    • Leadership
    • Mergers and Acquisitions
    • Sales & Marketing
    • Specialty Practices
  • MSSP Insider
    • Back
    • Business of Security
    • Cloud and Edge
    • Endpoint
    • Network
    • People and Careers
    • Training and Policies
  • MSP 501
    • Back
    • 2020 MSP 501 Rankings
    • 2020 Hot 101 Rankings
    • 2020 MSP 501 Report
  • Intelligence
    • Back
    • Our Sponsors
    • From the Industry
    • Content Resources
    • COVID-19 Partner Help
    • Galleries
    • Podcasts
    • Reports
    • Videos
    • Webinars
    • White Papers
  • EMEA
  • Awards
    • Back
    • Excellence in Digital Services
    • 2020 MSP 501
    • Top Gun 51
  • Events
    • Back
    • CP Conference & Expo
    • Channel Partners Evolution
    • Channel Evolution Europe
    • Channel Partners Event Coverage
    • Webinars
  • Channel Mentor
    • Back
    • Channel Market Intelligence
    • Channel Educational Series
    • Newsletter
  • REGISTER
  • MSPs
  • VARs / SIs
  • Digital Service Providers
  • Cloud Service Providers
  • CHANNEL PARTNERS ONLINE
 Channel Futures

RMM/PSA


Private Equity Firm Invests In N-able, Managed Services

  • Written by Joe Panettieri 1
  • October 5, 2011
Accel-KKR, a private equity firm, has made a minority investment in N-able Technologies, the managed services software provider.

Accel-KKR, a private equity firm, has made a minority investment in N-able Technologies, the managed services software provider. The news comes one week after Zenith Infotech spun off Zenith RMM in a private equity deal. The big questions: How will N-able Technologies leverage the cash infusion? And is the RMM (remote monitoring and management) software market set to accelerate or consolidation?

Note: N-able planned to announce the news on Oct. 6. But MSPmentor is running the story now (Oct. 5) because specific details have now surfaced elsewhere on the web, and the confirmed details spread across social media. The private equity news had been rumored since September.

CEO Perspectives

N-able Technologies did not disclose how much money Accel-KKR invested in the company. CEO Gavin Garbutt confirmed that the Accel-KKR investment involves a minority position in N-able Technologies. Accel-KKR gains two seats on N-able’s board of directors, which now has eight members. N-able’s management team remains in place.

In a phone conversation, Garbutt said N-able will march forward with a three-year plan to grow its managed services software business, blending freemium software with paid offerings for MSPs. Note: The three-year plan should not be considered an actual exit plan. Each year, Garbutt and N-able’s board always update and revise a longer-term, ongoing three-year strategy, Garbutt mentioned.

Garbutt said he started exploring corporate finance options about two quarters ago — exploring everything from an IPO to a private equity relationship. One big goal: Grow N-able’s international footprint; roughly 40 percent of N-able’s revenues come from outside North America. N-able expects the private equity infusion to accelerate that growth.

Dollars and Cents

In recent months, N-able has experienced exponential growth in terms of the number of endpoints the company’s software now manages. But it’s difficult for MSPmentor to connect the dots between N-able’s growing installed base of software and actual revenue growth figures. As a privately held company, N-able does not disclose such financial metrics but Garbutt told me N-able is profitable. “We are profitable,” said Garbutt. “I  can’t talk on revenue numbers. But it’s… I can certainly say business is going unbelievably well.”

Potential Software Partners, More M&A?

Longer term, I suspect N-able may explore partnerships across Accel-KKR’s private equity portfolio. In my opinion, some portfolio names worth tracking include Endurance International (an SMB cloud specialist), Kana Software (service experience management) and Layered Technologies (managed dedicated hosting). Garbutt didn’t mention potential software partners by name but he confirmed N-able will explore partnerships across the Accel-KKR portfolio.

There are also signs that N-able will consider making investments and/or acquisitions. It sounds like N-able has already made an acquisition — very quietly — and will release a product related to the acquisition during the N-able Partner Summit (Oct. 12-14, Scottsdale, Ariz.).

RMM Software Market: Growing Or Consolidating?

As mentioned, this is the second major private equity investment targeting the RMM (remote monitoring and management) software market within the past week. Also, we’re seeing mergers, acquisitions, private equity and venture capital activity in the cloud storage and online backup markets.

Bottom line: We’re reached an inflection point in the managed services software market. I believe most of the major RMM software providers remain in growth mode. But many of the software players are trying to figure out how to (A) grow the market rather than (B) battling for market share in the established pool of MSPs.

Generally speaking, I think the RMM market will ultimately consolidate around fewer players that have deep pockets. Zenith RMM and N-able Technologies have embraced private equity to drive growth and weather the coming storm. I believe other players like Kaseya and LabTech Software (backed by ConnectWise Capital) won’t pursue investment money and plan to leverage their existing cash flow to grow. I’m checking around to see if additional RMM players are planning private equity or alternative financial moves.

Another key question: How long is Accel-KKR’s investment horizon with N-able? Garbutt indicated that the Accel-KKR-N-able relationship is a long-term engagement. Check Accel-KKR’s track record and you’ll discover many of their investments involve multi-year engagements. But we’ll be poking around to see if there are specific time horizons worth mentioning.

Tags: Cloud Service Providers Digital Service Providers MSPs VARs/SIs RMM/PSA Strategy

Related


  • No Racism
    Racially Charged Tweet Costs Alteryx CRO His Job
    Numerous individuals, including a customer, criticized Alteryx for the tweet, which led to the CRO's resignation.
  • Select a Hire
    AvePoint Taps Ingram Micro, Palo Alto Networks Vet to Lead Channel
    He held channel exec roles at Ingram and Palo Alto Networks
  • Vendors: How Do You Measure a Partner Relationship?
    Vendors still struggle to gain a genuine insight into their partners’ needs. So what can they do?
  • Public sector IT
    Public Sector IT Funding Outlook for 2021--and What It Means for Our Reseller Partners
    Public sector IT resellers must anticipate customers’ changing priorities to most effectively position offerings.

Leave a comment Cancel reply

-or-

Log in with your Channel Futures account

Alternatively, post a comment by completing the form below:

Your email address will not be published. Required fields are marked *

Related Content

  • The Smart Money’s on a Staged Approach to Security Services Provision
  • Xerox Financial Services Launches to Help Enterprise, SMB Customers
  • Protegrity Partners Get New Program with Added Training, Certification
  • Getting Clients Ready for an 88% Increase in Cloud Adoption

Galleries

View all

Channel Partners Virtual 2021 Is the Hottest Ticket in Town

February 26, 2021

Industry Perspectives

View all

The “Roaring 20s” Are Coming

February 25, 2021

Three Ways MSPs Can Improve Supply Chain Security

February 24, 2021

SASE: The Key to Mitigating Business Transformation Risk

February 22, 2021

Webinars

View all

A Partner’s Perspective on Channel Success in 2021

March 17, 2021

XDR and Why it Matters to MSPs

March 24, 2021

Top Security Trends Impacting Technology Security Providers In 2021

March 25, 2021

White Papers

View all

Ready To Add Cutting Edge IoT Solutions To Your Portfolio?

  • 1
February 25, 2021

What Is The Value Of Distribution For The Internet Of Things?

February 25, 2021

The Internet of Things (IoT): Where do You Begin?

  • 1
February 25, 2021

Upcoming Events

View all

Channel Partners Virtual

March 2, 2021 - March 4, 2021

Channel Partners Conference & Expo

November 1, 2021 - November 4, 2021

Videos and Fastchats

View all

FASTCHAT: How SOAR Eliminates Security Challenges and Elevates Service Provider Revenues

January 6, 2021

Happy Holidays from Channel Partners & Channel Futures!

December 21, 2020

FASTCHAT: How Old, Unpatched Technologies Are Creating New Security Threats for MSPs and Their Customers

December 3, 2020

Twitter

ChannelFutures

Amazon WorkSpaces @awscloud DaaS client will be available on @IGEL_Technology virtual endpoint client OS.… twitter.com/i/web/status/1…

February 26, 2021
ChannelFutures

.@VMware cutting more workers in California as part of ongoing #workforcerebalancing. #layoffs… twitter.com/i/web/status/1…

February 26, 2021
ChannelFutures

#CPVirtual is March 2-4. It’s the hottest ticket in town — any town, since it’s 100% online — so make sure you have… twitter.com/i/web/status/1…

February 26, 2021
ChannelFutures

.@datto, @ThreatLocker partner to streamline #MSP secure business operations. dlvr.it/RtYvJK https://t.co/nKGnwbblNO

February 26, 2021
ChannelFutures

Infographic: Why Partner with Sierra Wireless and GetWireless? dlvr.it/RtYh1m https://t.co/KcBFzXIx7l

February 26, 2021
ChannelFutures

Infographic: The Sierra Wireless Essential Series dlvr.it/RtYgxv https://t.co/CatxbRHzXr

February 26, 2021
ChannelFutures

#Threatprotection is no small matter for #MSSPs. Find out what vendors say you have to do this year to protect your… twitter.com/i/web/status/1…

February 26, 2021
ChannelFutures

Cloud strategies and cybersecurity are key, and #COVID19 will have more impact than #Brexit on U.K. channel, says… twitter.com/i/web/status/1…

February 26, 2021

MSSP Insider

Newsletters and Updates

Sign up for The Channel Report, Channel Futures Update, MSP 501 Newsletter and more.

Live Channel Events

Get the latest information on the next industry-leading Channel Partners event.

Channel Partners Online

Want more? Find more channel news and analysis on our sister site, Channel Partners.

Media Kit And Advertising

Want to reach our audience? Access our media kit

DISCOVER MORE FROM INFORMA TECH

  • Channel Partners Online
  • Channel Partners Events
  • MSP 501
  • MSSP Insider
  • IoT World Today
  • Webhostingtalk

WORKING WITH US

  • Contact
  • About us
  • Advertise
  • Newsletter

FOLLOW Channel Futures ON SOCIAL

  • Privacy
  • CCPA: “Do Not Sell My Data”
  • Cookie Policy
  • Terms
Copyright © 2021 Informa PLC. Informa PLC is registered in England and Wales with company number 8860726 whose registered and Head office is 5 Howick Place, London, SW1P 1WG.
This website uses cookies, including third party ones, to allow for analysis of how people use our website in order to improve your experience and our services. By continuing to use our website, you agree to the use of such cookies. Click here for more information on our Cookie Policy and Privacy Policy.
X