Latest Channel M&A: Kaseya, Cisco, Upstack, Broadcom, More
ZeroFox shelled out $26 million for LookingGlass Cyber Solutions.
May 12, 2023
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Kaseya has completed its acquisition and integration of audIT, a SaaS-based sales presentation system developed by an MSP. The software aims to make it easier and quicker for others to create non-technical sales and business review presentations to SMB and midmarket enterprise clients.
Now that audIT is under the Kaseya umbrella, the development team, which has given the platform the look and feel of other Kaseya products, will eventually add new automation and AI features to help MSPs gather more client data and interpret it better.
Learn more about the deal here.
Cisco is acquiring Smartlook, a privately held company headquartered in the Czech Republic. It represents a step forward in delivering more value for Cisco AppDynamics and the Full-Stack Observability Digital Experience Monitoring (DEM) solution, with new application and user experience insights, analytics, and troubleshooting capabilities.
Smartlook takes an enhanced industry approach to Real User Monitoring (RUM) as a critical component of DEM. It utilizes session recordings with event-based analytics to analyze end-user digital behavior and provides insights into user interactions in the production application environments. This enables organizations to efficiently troubleshoot hard-to-replicate digital behavior anomalies and analyze user interaction trends across web and mobile application platforms, helping them to optimize user experiences and business outcomes, the company said.
Ericsson-owned Cradlepoint is bolstering its SASE and zero-trust security portfolio with the acquisition of Ericom Software.
Cradlepoint will add Ericom to its enterprise wireless solutions solutions portfolio. Specifically, the company plans to integrate Ericom capabilities into the Cradlepoint NetCloud Threat Defense cloud service. The Israel-based provider specializes in remote access and cloud-delivered web security. Moreover, Ericom possesses key components of secure access service edge (SASE). Those include secure web gateway (SWG), zero-trust network access (ZTNA) and cloud access security broker (CASB).
Cradlepoint in its strategy to deliver SASE is making its Threat Defense cloud services interoperable with its Exchange SD-WAN offering.
What is Ericsson’s strategy with this acquisition? Learn more here.
California-based tech services distributor Datatel Solutions is joining the Telecom Decision Makers (TDM) family and merging with Clarus Communications.
The parties did not reveal the financial terms of the deal or the size of the combined company. They said the merger brings together two likeminded groups that did not want to join forces with private equity investors. Their combined skills will help Datatel’s partner base move up-market with customers and expand and diversify Clarus’ partner base.
TDM in 2021 bought Clarus and WheelHouse Solutions. The latter two merged into the TDM family but remained standalone businesses. TDM functions as the customer-facing technology advisor (agent) business, Clarus is the technology services distributor (TSD) with a back office to support a vendor portfolio, and WheelHouse fills the role of midmarket and enterprise-focused MSP.
Learn why consolidation has occurred across the TSD landscape.
ZeroFox is acquiring LookingGlass Cyber Solutions, the provider of external attack surface management and global threat intelligence, for $26 million.
Integrating LookingGlass Cyber capabilities into the ZeroFox external cybersecurity platform will allow customers to build a strong security posture. ZeroFox will provide visibility into external attack surface assets and vulnerabilities, including improved intelligence to disrupt emergent threats.
Discover how the acquisition of LookingGlass Cyber bolsters ZeroFox’s strategy of providing customers with a single end-to-end platform.
Managed communications service provider BCM One is buying U.K.-based voice provider Pure IP to expand its international footprint and shore up its interoperability with Microsoft Teams.
The companies announced that they have entered into a definitive acquisition agreement, expected to close in June, pending regulatory approval. The deal, whose financial details the companies did not disclose, will bring BCM One’s total employee count to more than 500. It will also add offices in the United Kingdom, New Zealand and San Francisco.
BCM One leaders said Pure IP allows BCM One to offer number availability in 137 countries, a boon for channel partners who want to sell to global, multisite accounts. Moreover, they say Pure IP’s synergies with Microsoft Teams, Cisco Webex and Zoom will help BCM One capitalize on growing market share they expect those three UC&C giants to get amid recessionary customer rationalization.
Learn why this deal further illustrates the fact that the UCaaS space continues to benefit from consolidation.
Signal Technology Group, the New York-based technology advisory firm, has accepted an investment from Upstack.
The deal brings Signal, registered as Ryse Communications, into a private equity-backed organization that founder and CEO Rob Wuest said will allow him to focus on core activities while scaling. Wuest, who founded Signal in 2000, will stay on board at Upstack, accepting the title of partner.
“By partnering with Upstack, I can offload the day-to-day of running a business, so I can spend more time advising business customers,” said Wuest. “I also can offer customers access to top-notch support and specialists across a range of solutions, so they can leverage the latest technologies to be more competitive.”
Learn why Signal chose to join with Upstack over other investors.
Broadcom disputes a European Commission claim that its proposed $61 billion acquisition of VMware may restrict market competition for certain hardware components.
In December, the Commission opened an in-depth investigation to assess if Broadcom’s acquisition of VMware may restrict competition in the market for the supply of network interface cards (NICs), fiber channel host-bus adapters (FC HBAs) and storage adapters.
In addition, the Commission had concerns that Broadcom may hinder the development of SmartNICs by other providers, and start bundling VMware’s virtualization software with its own software and no longer offer VMware‘s virtualization software as a standalone product.
Find out why Broadcom remains confident that the deal won’t present any competition issues.
ScalePad, the software company that provides asset management, backup monitoring and other tools for MSPs, has added a QBR platform to its suite with the acquisition of Lifecycle Insights.
Lifecycle Insights designs its tools to help MSPs quickly deliver QBRs; consolidate warranty look-ups, asset life-cycle management and vCIO reporting; and link risk assessments and assets for building projects and budgeting forecasts. The company, based in Delaware, was founded in 2019 by Alex Farling, a former MSP, and Marnie Stockman, Lifecycle Insights’ managing partner. All nine of Lifecycle Insights’ employees will remain with the company.
Discover why the QBR and vCIO tools are considered “the last mile” of ScalePad’s core products.
Trace3 has acquired Set Solutions, an advanced cybersecurity consulting and procurement solutions provider. The acquisition continues Trace3’s strategic expansion plan.
The investment allows the combined companies to deepen cybersecurity capabilities to drive success for commercial and enterprise clients.
Set Solutions has long alleviated challenges technology leaders encounter in the ongoing evolution of the cyber threat landscape. Trace3’s security portfolio is strengthened by Set Solutions’ specialized expertise in cybersecurity and focus on mature and emerging technology-based solutions. In addition, this acquisition expands Trace3’s footprint in the southern part of the United States.
Find out more about how Trace3 is enhancing its tech portfolio.
Akamai is buying Neosec, an API detection and response platform based on data and behavioral analytics, for stronger API security.
Neosec’s API security solution adds to Akamai’s application and API security portfolio by extending its visibility into the growing API threat landscape. The combination aims to make it easy for customers to secure their APIs by helping them discover all of their APIs, assess their risk, and respond to vulnerabilities and attacks.
The combined API solutions are expected to put Akamai at the forefront of a critical emerging category of API security for which customers are actively seeking support.
Find out how Akamai is welcoming Neosec’s partners into its partner program.
Tom Andrulis, CEO of Intelligent Technical Solutions (ITS), was looking for a strong company focused on a hot tech sector to cap ITS’ latest round of M&A. He found it in A Leap Ahead IT (ALA IT), a Sacramento, California-based MSP led by Sean Harris, an expert in cybersecurity, which happens to be one of today’s hottest managed services.
Andrulis recently filled us in on some of his strategies and thought processes behind evaluating the five MSPs ITS added over the last six months or so, all amounting to a significant expansion. Andrulis’ approach can help MSPs looking to position themselves for a merger or acquisition, strengthen their core offerings or uniting a geographically diverse team around particular solutions.
In ITS’ case, the solution was cybersecurity.
Read more here about Andrulis’ vision for the company.
The 20 MSP has added three more MSPs to its growth platform. The 20’s spree began last year with 13 deals and the company has closed six more this year. The three companies joining are UNI Computers (Kansas), CyberSecure IT Solutions (Florida), and The Computing Edge (Oklahoma). As members of The 20 MSP’s growth platform, all three MSPs achieved impressive, year-after-year growth, evolving into regional leaders with demonstrated excellence in delivering successful outcomes to clients, The 20 MSP said.
These latest deals deepen The 20’s rapidly expanding national footprint, broaden the range of its service offerings, and strengthen its expertise in a variety of areas, including cloud solutions, cybersecurity, IT consulting, and business continuity.
For years, Dynascale CEO Igor Shalkevich has been looking to build what he calls a new kind of MSP. He can now execute that vision following Dynascale’s recent acquisition by Thurston Group, a private equity company.
Shalkevich’s plan is to create a full-service MSP that offers a high level of security and deploys fixed-price, hybrid private cloud services that are tied to co-location facilities and hyperscalers. The model, he said, is more efficient, secure, scalable and less expensive than what most MSPs offer today.
Shalkevich plans to buy one or two additional MSPs each year for the next two to three years. He’s also looking to buy several software companies.
Read more about how Shalkevich has expanded staff.
For years, Dynascale CEO Igor Shalkevich has been looking to build what he calls a new kind of MSP. He can now execute that vision following Dynascale’s recent acquisition by Thurston Group, a private equity company.
Shalkevich’s plan is to create a full-service MSP that offers a high level of security and deploys fixed-price, hybrid private cloud services that are tied to co-location facilities and hyperscalers. The model, he said, is more efficient, secure, scalable and less expensive than what most MSPs offer today.
Shalkevich plans to buy one or two additional MSPs each year for the next two to three years. He’s also looking to buy several software companies.
Read more about how Shalkevich has expanded staff.
We picked more than a dozen of the latest channel M&A from April to feature in this edition of our merger-and-acquisition roundup. These includes acquisitions by Kaseya, ZeroFox, Upstack, Broadcom and more. The running theme of some of these deals was that they have a heavy MSP and security bent.
For example, Intelligent Technical Solutions (ITS) bought A Leap Ahead, or ALA IT, a Sacramento-based MSP focused on cybersecurity. The purchase is part of the company’s sizeable expansion, positioning it both geographically and around specific solutions.
And ITS isn’t alone here. ZeroFox shelled out $26 million for LookingGlass Cyber Solutions, the provider of external attack surface management and global threat intelligence.
Add ScalePad’s acquisition of Lifecycle Insights to that list. Lifecycle Insights designs its tools to help MSPs quickly deliver QBRs. It may be alphabet soup but it’s just one more deal to shore up ScalePad’s dominance in IT asset management.
See our slideshow above for the recap of latest channel M&A. And if you didn’t catch the last roundup, you can do so here.
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