mindSHIFT Shows Continued Growth Amid M&A Deals
It’s been a busy beginning to 2011 for mindSHIFT Technologies (ranked near the top of our fourth-annual MSPmentor 100). Indeed, mindSHIFT has already made two acquisitions in 2011, bringing the company’s total number of acquisitions to nine since 2003. And now, CEO Paul Chisholm is sharing some more details about mindSHIFT’s performance.
As you’ll recall, mindSHIFT has acquired Alpheon Corp. and Orbit Systems so far this year, boosting the company’s staff by about 100 employees. It sounds like mindSHIFT will surpass the 500-employee mark sometime within the next few months. In the last three years, mindSHIFT has grown by roughly 124 percent. In addition to the MSPmentor 100 ranking, the company has landed on the Inc. 500 — which tracks the fastest-growing privately held companies in the U.S.
“We’re showing great financial stability and that’s very important for a couple of reasons,” said Chisholm. “Clients must be convinced that the company it deals with will be around and will be able to grow with them in the future. Also, if you’re not financially strong, you won’t be able to deliver the top cloud systems that your clientele needs.”
Chisholm says mindSHIFT uses a “selective acquisition strategy,” during which it identifies potential companies that can help mindSHIFT best grow and solidify its managed service offerings. “The process usually takes about a year to a year and a half.”
But some of those deals apparently take a little longer. The most recent acquisition came earlier in February of this year when mindSHIFT acquired Minneapolis, Minnesota-based ORBIT Systems — a company that describes itself as a “virtual IT department” for MSP’s. Chisholm told us that the deal was four years in the making.
“They have a new cloud service offering that really matches well with what we do,” says Chisholm. The move also allows mindSHIFT to expand into the midwest market. ORBIT also has clients in Arizona, leaving the door open for mindSHIFT to pursue a full western expansion.
In January of 2011, the company acquired Alpheon — a management technology firm that specializes in servicing small to medium-sized health clinics. That the deal will help mindSHIFT strengthen and expand the services it offers to that same small SMB healthcare vertical market. It’s a little bit too early to tell how the Alpheon acquisition is working out so far, but we’ll be checking in with Chisholm.
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