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 Channel Futures

Strategy


Managed Services Merger: Canadian MSPs Combine Forces

  • Written by Joe Panettieri 1
  • March 30, 2011
Say hello to the 15th managed services merger of 2011. The latest deal involves VODA Computer Systems Ltd. and Graycon Group Ltd. merging to serve six locations in Western Canada.

Say hello to the 15th managed services merger of 2011. The latest deal involves VODA Computer Systems Ltd. and Graycon Group Ltd. merging to serve six locations in Western Canada.

Terms of the deal were not disclosed. I’m double-checking to learn who will run the combined company, and some more basic nuts-and-bolts information (number of combined employees, combined customer base figures, etc.).

Here’s some preliminary info:

  • Graycon was launched in 1989 by Douglas Gray. The company apparently has 160 employees and operates across Calgary, Edmonton, Red Deer, Saskatoon, Kamloops and Kelowna. The company supports more than 400 different customers.
  • Based in Kamloops, VODA launched in 1993.I’m checking to see if VODA President Andrew Watson and VP Mark Zienowicz will join the combined

The combined company will offer infrastructure, managed services, network and security solutions, and outsourced managed IT. I’ve sent an email to Graycon seeking more information.

M&A Slowdown?

If the current quarterly pace continues, the MSP M&A market will have about 60 deals or so this year. However, it seems like most of this year’s major deals (so far…) occurred during the first few weeks of 2011. So perhaps M&A is slowing just a little bit. In addition to the Graycon-VODA merger, M&A deals of 2011 have involved:

  1. Trivalent Group acquired Innovative Software Strategies
  2. eCommerce Industries acquired FMAudit for managed print services expertise
  3. Peak Uptime acquired eMonarch
  4. mindSHIFT acquired ORBIT
  5. Carousel acquired OmniPresence
  6. Fraser Advanced Information Systems purchased PennLantic Corp.
  7. Ancero acquired Integrated Network Consulting Inc.
  8. Netgain acquired DLP Technologies
  9. Microholdings US acquired ConnectIT Networks Inc.
  10. Konica Minolta acquired All Covered, a national MSP that plans continued acquisitions
  11. Printelligent acquired DirectPointe’s managed print services business
  12. Fully Managed acquired HIT Business Solutions as part of a Canadian expansion plan
  13. mindSHIFT acquired Alpheon
  14. MBCSolutions merged with Britec Computer Systems.

That’s the list so far. We’ll keep updating it as more M&A deals happened. Also of note: DirectPointe, based in Utah, has put its $8.2 million managed services provider business up for sale, MSPmentor reported earlier this year.

Sign up for MSPmentor’s Weekly Enewsletter, Webcasts and Resource Center. Follow us via RSS, Facebook and Twitter. Check out more MSP voices at www.MSPtweet.com. Read our editorial disclosure here.

Tags: Cloud Service Providers Digital Service Providers MSPs VARs/SIs MSP 501 Strategy

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