Mergers and Acquisitions: 7 MSPs Acquired Since New Year 2012
MSPmentor concedes: Our math isn’t exactly right. But using some fuzzy logic, we’ve spotted seven mergers and acquisitions within the managed services market since the start of 2012. And we’re only five days into the New Year. The latest deal involves Xerox buying LaserNetworks, a managed print services specialist. Are more deals coming? Absolutely yes. Here’s a brief look at the next potential deal — which may be announced in late January or February 2012.
MSPmentor believes an MSP with roughly $15 million to $20 million in annual recurring revenues is set to announce some sort of M&A deal later this month. The deal, if true, will likely involve a healthy blend of cloud services and managed services. I’m not sure if it’s a national deal but I do know the potential deal — if confirmed — will have potential East Coast implications.
Meanwhile, a reminder: Roughly 100,000 North American channel partners — VARs, MSPs, IT service providers — remain independent. Keep things in perspective: Some MSPs are pursuing M&A, but the vast majority of the market continues to pursue organic growth.
Also of note: A few MSPs have told MSPmentor that they feel betrayed by some unethical moves in the M&A market. In particular, some potential buyers have allegedly milked potential sellers for information before ending M&A discussions. Yes, responsible discovery — on both sides of the table — is part of the M&A process. And proposed deals sometimes fall apart. But some MSPs are starting to believe that “buyers” aren’t really buyers. Instead, the potential buyers are allegedly gathering competitive information and then ending M&A discussions…
We’ll share more perspectives on that alleged trend in the days ahead.
A Complete List of MSP M&A Deals
You can track a complete list of MSP merger and acquisition activity using the MSPmentor M&A Tracker. Note: Some of the initial 2012 deals were actually negotiated in 2011 but actual announcements didn’t surface until January 2012.