Calligo Acquires UK MSP Network Integrity Services

Managed data services provider Calligo is rounding off 2020 with its fourth acquisition this year. It has purchased Network Integrity Services.  The MSP specialises in managed IT, cloud and security services, with locations across the U.K.

The acquisition will expand Calligo’s presence in the U.K. Network Integrity Services itself has scaled rapidly, completing nine acquisitions in the last 10 years. For Calligo, the purchase is its ninth acquisition in three years. It closely follows November 2020’s acquisition of Cinnte Technologies in Ireland.

Headquartered in Jersey in the Channel Islands, Calligo already had a presence in the U.K. However, this is Calligo’s first U.K. acquisition. The company has not disclosed the value of the deal.

The 160+ person organisation also has locations in the U.S., Canada, Ireland and Luxembourg. Revenues are split approximately evenly between North America and EMEA.

Calligo’s Julian Box

“Calligo is an unusual MSP,” said Julian Box, founder and CEO of Calligo. “[Our] services stretch far beyond traditional ‘IT maintenance and security’ into helping businesses use their data productively, intelligently, and above all, safely.”

Box said that this approach makes it difficult to find suitable acquisition targets. “We were seeking an MSP who shared our philosophy that MSPs ought to offer more than simply caretaking customers’ technology. Who knew the value of supporting customers in the fullest and safest use of their data. Network Integrity Services was that rare find.”

“This acquisition expands our local reach and strengthens our capabilities both nationally and globally,” said Box.

Replicating Canadian Success

Box said M&A has always been a key aspect of Calligo’s growth strategy. Three of this year’s four acquisitions were Calligo looking to grow rapidly in Ireland, a new territory for the business.

“We saw a chance to become one of the largest MSPs in the country,” said Box.

The CEO says this is similar to Calligo’s approach in Canada. It acquired three MSPs in the greater Toronto area one after another in 2017, 2018 and 2019. The firm established a presence in a territory with a growing number of data-reliant businesses and an emphasis on data protection.

“We anticipate replicating our success in Canada in organic growth and capitalizing on the region’s natural interest in data services,” he said.

Box says Calligo has focused its M&A activity on finding businesses “that have shown a solid ability to weather the challenges the pandemic has thrown at them.”

MSPs “Underserving Customers”

However, the Gold Microsoft Partner believes the current MSP model underserves its customers.

“Too many MSPs are focused on maintaining customers’ technology,” Box said. “Even the so-called forward-thinking MSPs are limiting their focus to security services.”

Box said for MSPs to deliver true value to customers, their focus must shift from technology to data. “[Also] providing services that make customers’ data continuously available for productive and intelligent use. But this use has to be safe, which requires not only data security, but also observance of industry regulations and data privacy laws. This is a breadth of data protection that most MSPs are neglecting to provide, leaving customers at risk.”

“If MSPs only focus on their customers’ technology, they can only support the status quo,” he said. “By focusing on their data, they can help customers grow and innovate safely. It’s a critical difference, and a change that Calligo is determined to drive through the MSP market.”

Calligo was ranked in the Top 20 of Channel Futures’ annual MSP 501 ranking.