Microholdings US has acquired ConnectIT Networks Inc., a managed services provider in Canada. We've reached out to Microholdings US and ConnectIT Networks for additional comment about the deal. In the meantime, here's what we know so far.

Joe Panettieri, Former Editorial Director

January 10, 2011

2 Min Read
Microholdings US Makes Managed Services Acquisition

MicroHoldingsUS

Microholdings US has acquired ConnectIT Networks Inc., a managed services provider in Canada. We’ve reached out to Microholdings US and ConnectIT Networks for additional comment about the deal. In the meantime, here’s what we know so far.

In a prepared statement, Microholdings US CEO James Wheeler says the ConnectIT Networks acquisition will potentially “increase the revenue of Microholdings in the upcoming year; management also believes it will bring additional shareholder value to MCHU.” The purchase closed on January 1, 2011, the press release added.

MSPmentor has reached out to Microholdings and ConnectIT Networks for additional comment about the acquisition.

In the meantime, a few unusual items worth noting:

  • ConnectIT Networks was not quoted in the Micrholdings press release. That’s unusual, since the seller typically describes how an M&A deal will potentially benefit their company.

  • The press release mentions ConnectIT Networks relationships with Dell Inc. and Microsoft Corp. — but the references involve incorrect corporate names (Dell Computers and Microsoft Technologies).

  • The ConnectIT web site does not profile a management team, though the site does mention ConnectIT’s focus on IP telephony, call center applications and wireless communications.

A new Microholdings web site came online December 30, 2010. The company is a pink sheet penny stock. Some penny stocks certainly succeed. But we’ve also seen examples of penny stock investment failures in the managed services market. A prime example involves XnE Inc.‘s early 2010 investment in MSP on Demand, the hardware as a service (HaaS) specialist. Sometime later in 2010, XnE apparently voided the MSP on Demand investment, following a lawsuit filed by N-able Technologies against MSP on Demand.

More Deals Worth Noting

Meanwhile, there’s been lots of M&A activity in the managed services market since the New Year. Recent deals include:

That’s all for now… though we’re tracking at least two other potential M&A deals.

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About the Author(s)

Joe Panettieri

Former Editorial Director, Nine Lives Media, a division of Penton Media

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