Evolve IP-ATSG Merger Creates DaaS, Managed Services 'Powerhouse'

Desktop-as-a-service (DaaS) vendor Evolve IP and mega-managed services provider ATSG are joining forces.

ATSG will have a controlling majority, with support from private equity firm RunTide Capital and fund management by Morgan Stanley Private Equity Secondaries. The companies did not reveal the financial terms of the agreement, but said their combined revenue will exceed $230 million, with more than 1,700 midmarket and enterprise customers. ATSG CEO Russ Reeder will serve as CEO of the combined company.

The merger marries ATSG, a Gartner Magic Quadrant challenger for DaaS and leader in Managed Network Services, with a vendor in Evolve IP that has formed a strong footprint in the channel with its DaaS, unified communications and contact center offerings. The companies called their service offerings "adjacent but highly accretive."

ATSG's Russ Reeder

"Evolve IP offers an innovative, market-leading suite of desktop-as-a-service, cloud communications, and contact-center solutions. Combined with ATSG's infrastructure-centric managed services, we will strengthen our collective position in the market and provide better outcomes for our combined base of customers," Reeder said. "By combining with Evolve IP, not only are we combining our collective expertise, culture and services, we're also positioning ATSG to emerge as one of the largest privately owned managed services platforms with an ability to drive value for all of our stakeholders."

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Evolve IP CEO Jeff Coursen called the agreement "a transformative step forward" for the company and its clients.

"This aggregation of our talent, tools, and resources is a testament to our commitment to pioneering the industry and will enable us to offer maximum value for our customers. We are looking forward to leveraging ATSG's rich platform of intellectual property and suite of services capabilities to deliver an increasingly end-to-end solution for our customers," Coursen said.

Channel Impact

Evolve IP since its founding in 2007 has worked closely with technology advisors (agents) to expand its sales footprint. It partners with national tech services distributors (TSDs) Intelisys, Avant, Telarus, AppDirect and Sandler Partners.

Common Sense's Danielle Gallagher

ATSG is not listed on the line cards of those TSDs, but Reeder indicated the combined company's interest in working with the community.

“ATSG and Evolve IP have proven track records of partnering with companies and beating expectations to provide IT solutions that empower customers to hit their goals. The combination of ATSG and Evolve IP will enable the scale needed to reach more customers and help make them more successful. ATSG is also looking forward to working with Evolve IP‘s strong IT advisors, agents and resellers to get the word out to the companies that can benefit the most," Reeder told Channel Futures.

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Gary Coben, senior vice president and channel chief at Evolve IP, said partners have given positive feedback thus far.

“Our partners who we have spoken to agree with our internal sentiment – Evolve IP just got a lot stronger," Coben told Channel Futures. "By joining forces with ATSG, we now have an enhanced ability to operate and execute within a competitive market, thanks to the right partners and product set.”

Pennsylvania-based Common Sense Technologies was an early partner of Evolve IP, and one of the technology advisors that helped Evolve IP establish a strong East Coast footprint before expanding nationally.

"Evolve IP was one of the first companies to completely embrace the channel," said Danielle Gallagher, who is managing partner of the company with her sister, Michelle Doerr. "John Gallagher, our father and founder of Common Sense Technologies, partnered with them from their inception and advised them when they were cultivating their channel program because he believed in their forward-thinking philosophy, and it is why we still partner with them today. This relationship with ATSG is the next logical step, and we are looking forward to the opportunity to bring more offerings to our customers from leaders in the industry."

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