Managed Storage Acquisition: PHNS Buys AmeriVault
Vertical market solutions providers are opening their wallets to acquire managed service providers. The latest example: PHNS, a solution provider to the healthcare vertical, has purchased AmeriVault — which specializes in online data backup and recovery services.
This is the 10th MSP-centric buyout we’ve spotted this year, and the second this week. Here’s some analysis of the PHNS-AmeriVault deal, and the fast-evolving MSP acquisition market.
To be sure, MSPs remain a prime target for acquisition, as highlighted by our MSPmentor Merger and Acquisition Tracker — which contains a running list of MSP-centric buyouts.
PHNS’s decision to buy AmeriVault is based on AmeriVault’s long-term history in the managed services space. AmeriVault has offered online backup for about a decade, and has generated double-digit annual grow since the company’s launch.
This isn’t PHNS’s first foray into data protection. The company also operates Network Technology Group (NTG), a subsidiary that focuses on “electronic data protection services.” Together, AmeriVault and NTG reach nearly 1,300 customers.
PHNS did not disclose financial terms of the AmeriVault buyout, reinforcing an ongoing trend where it’s difficult for peers to nail down metrics for valuating MSPs. However, MSPmentor readers say managed service providers are valued at roughly 1.2 to 1.8 times annual revenue, according to this article and related reader comments.