NexusTek Beefs Up Cloud, Managed IT Services with Latest M&A
**Editor’s Note: Please click here for a recap of the biggest channel-impacting merger and acquisition news from April and May.**
IT services and consulting firm NexusTek has acquired the cloud hosting, infrastructure and managed-services business units of Zumasys, a West Coast-based provider of cloud services.
Today, Zumasys Cloud, now NexusTek, hosts critical applications for tens of thousands of users. NexusTek’s IT services include help desk, cloud services, cybersecurity services, IT consulting, server monitoring, VoIP and Microsoft Dynamics.
NexusTek’s Mike Jenner
Mike Jenner, NexusTek’s CEO, tells Channel Partners with the expansion to the West Coast and the associated increase in NexusTek’s customer base, “our partners will have the opportunity to showcase their applicable solutions.”
“NexusTek is committed to offering our clients premier IT solutions and our valuable partners are an integral variable to achieving that goal,” he said. “The alignment of NexusTek’s award-winning cloud and managed IT services with Zumasys’ acquired business units creates an immediate synergy and upgrade to NexusTek. In addition, NexusTek can now easily provide top-tier IT and cloud services to the West Coast and nationwide.”
Financial terms of the deal were not disclosed.
This deal marks NexusTek’s fifth M&A transaction in four years. NexusTek is backed by Abry Partners, a private-equity firm with more than $77 billion of leveraged transactions under its belt. In May, Abry announced it is merging NexusTek with managed private cloud service provider Breakthrough Technology Group (BTG). The combined entity will be marketed under the NexusTek brand.
“Each acquisition establishes new frontiers for our partners,” Jenner said. “When previously limited or absent from opportunities, our partners have an opportunity to showcase their products [and] services and expand with NexusTek. Our clients have no shortage of IT needs and we take pride in delivering IT solutions, in conjunction with our partners, that often exceed our clients expectations.”
During the last three years, NexusTek has grown at a compound annual growth rate (CAGR) of 34 percent and serves more than 2,000 organizations.
“As with any significant growth and acquisition, there are opportunities to grow established relationships as well as [to] forge new ones, all with our clients’ best interests in mind,” Jenner said. “We welcome new partners and value our partners that continue to show innovation for the benefit of the small and midsize business community.”
“We are pleased to have our cloud, infrastructure and MSP team join NexusTek to further their mission of helping companies small and large increase productivity, lower costs and improve business outcomes,” said Paul Giobbi, Zumasys’ president. “I am confident that customers and employees alike will benefit from the increased depth, capital and engineering expertise of NexusTek, and I am excited to watch the combined entity grow.”
