2012 Managed Services Merger Activity Starts Early
For the second time today, MSPmentor has confirmed new merger and acquisition (M&A) activity in the managed services market. The latest emerging deal, expected to be announced in Q1 2012, involves an MSPmentor 100 company that will merge with a cloud services provider. The other pending M&A deal, MSPmentor reported earlier today, involves two MSPs on the U.S. east coast. Yes folks, the 2012 merger season is starting early.
More than a month ago, an MSPmentor 100 company signed a letter of intent with a cloud services provider on the U.S. east coast. Sources close to the deal say it will likely be announced in early January if not sooner. Just my own estimate, but I suspect the combined entity will generate more than $10 million in annual revenues. It also sounds like there are existing synergies between each management team. As soon as official details surface MSPmentor will share them.
Meanwhile, two MSPs serving SMB customers on the U.S. east coast are also finalizing an M&A deal. I believe the MSPs’ employees have already been informed, disclosures to customers are under way, and an official deal could be announced on our about January 1, assuming this chatter is accurate.
MSPmentor will continue to track both apparent deals.