Kear IT Acquires Managed Services Provider

Kear IT Inc., a solutions provider in Baltimore, Md., has acquired a managed services provider in Hanover, Pa. The company also named a VP of managed services. The deal is the latest to land on the MSPmentor M&A Tracker, which highlights MSP-oriented mergers and acquisitions across the globe. Here’s a closer look at Kear IT’s MSP move.

Kear IT‘s acquisition target is Certified CIO LLC, which has clients throughout the Mid-Atlantic region. Financial terms of the deal were not disclosed. However, the acquisition has a clear goal: Accelerate Kear IT’s managed services initiative — branded as the Total Care Program.

According to a Kear IT press release:

Steven Plumlee, president and CEO of Certified CIO, has joined the Kear IT management team as Vice President of Managed Services. In a prepared statement he said:

Time to Sell? Time to Buy?

Generally speaking, I believe the pace of MSP mergers and acquisitions will continue to accelerate — even during the recession. As my dad always says: Everything is for sale — for the right price. And right now, truly successful MSPs are prime targets for buyouts.

Yes, some MSPs may hold out for the hire multiples they’d fetch in a booming economy. But the M&A timing comes down to individual company goals, timing and finances.

Aside from all the long-term challenges an M&A deal can bring, there are also two short term challenges:

We’ll be blogging quite a bit about both challenges in the weeks ahead.

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