CompassMSP's Acquisition Streak Continues with MotherG

MotherG, an Illinois-based MSP, is the latest target in CompassMSP‘s ongoing MSP acquisitions strategy.

Florida-based CompassMSP has locations throughout the northeastern United States and Florida. It’s more than 130 team members serve more than 500 clients. It has vertical expertise in legal, financial, health care and manufacturing.

MotherG is CompassMSP’s 10th acquisition. MotherG is ranked No. 44 on the Channel Futures MSP 501 2020 Hot 101.

Josh Kotler is CompassMSP‘s CEO.

CompassMSP’s Josh Kotler

“CompassMSP has been investing in growth since inception across all areas of the business because we believe that our clients and our team members stand to benefit greatly from scale,” he said.

For clients, the expansion means more capabilities and true 24/7 support, Kotler said. Furthermore, the additional financial strength allows CompassMSP to invest in its service delivery to stay ahead of demand.

CompassMSP expects to make multiple MSP acquisitions each year to continue its growth strategy.

Competitive Advantage

This latest of CompassMSP’s MSP acquisitions will give it a competitive advantage in several ways, Kotler said. First, it takes it to a new geographic market with significant growth potential.

Second, MotherG is led by a strong manager in Dave Davenport, he said. Davenport has the ability to build a business much larger than MotherG.

“We expect to invest in his current presence and make add-on acquisitions in the region surrounding Chicago,” Kotler said. “In addition, Compass has a comprehensive managed security offering, but MotherG has packaged their solution in an affordable and comprehensive manner that serves the needs for all but the most regulated industries. We think our existing clients – whether law firms, health care practices, financial services firms, manufacturers, nonprofits or clients in any number of other industries – will find great value and comfort with the Guardian Security Suite. We love the way MotherG broadens our portfolio of manufacturing clients, and brings even more line-of-business and process expertise to that vertical.”

CompassMSP had to adapt to the new reality created by COVID-19, Kotler said. Howevever, CompassMSP is the “solution to COVID-19 in many ways.”

“In the beginning, we worked around the clock to move thousands of people to a work-from-home (WFH) posture and help our clients navigate through the crisis,” he said. “Once we completed that effort we had to optimize WFH by rearchitecting our solutions to enable maximum productivity. And we had to make sure that it was all secure. Today we are helping our clients optimize the new technologies they bought through webinar-based training series that we think will make them even more productive.”

More Capital for Acquisitions

CompassMSP has “very supportive” capital providers in Webster Bank, Route 2 Capital and founding shareholders, Kotler said. They help the company execute its acquisitions.

“We are definitely buyers and have a set of criteria of what we are looking for,” he said. “And I encourage owners of mature MSPs who want to be a part of something bigger and who share our vision to reach out.”

“We are proud of what we have built at MotherG, but we are excited to be joining such a dynamic and growing organization that shares our commitment to providing proactive solutions that improve our clients’ security and technology experience,” Davenport said. “We’ve spent 15 years building MotherG and assembling a world-class team. And it was important that we partnered with a company that shares the vision of investing in our people.”