MSP M&A Not Slowing Down: PentaFour, NetGain Technologies, Logically, Layer 3, More
M&A activity is still at an all-time high, with snap-ups and private equity spend happening across the board.
July 18, 2022
![Mergers and Acquisitions, MA Mergers and Acquisitions, MA](https://eu-images.contentstack.com/v3/assets/blt10e444bce2d36aa8/blt3b31f65f4b57da51/65241eb653c26eea444d823f/mergers-and-acquitions-ma.jpg?width=700&auto=webp&quality=80&disable=upscale)
Shutterstock
NetGain Technologies (No. 386 on the 2022 Channel Futures MSP 501) has acquired EasyIT, an IT support and services company in Columbus, Ohio. In the past year, NetGain – backed by Evergreen Services Group – has made five major acquisitions in the IT industry.
Evergreen, which deals across the U.S. and Canada, has made more than 50 MSP acquisitions and investments since 2018.
Owners Eric and Kurt Hoeft started EasyIT in 1998. They, with the aid of CFO Marla Hoeft, have grown the company substantially over the years. The two brothers, along with the rest of the EasyIT team, will remain with the organization post-acquisition.
Privitar acquired Kormoon. Kormoon’s AI-powered technology will be used to extend the functionality of Privitar’s data privacy and provisioning offerings. This is designed to add new capabilities that will help organizations understand and comply with the rules governing data.
The need to comply with privacy rules and regulations is vital. Kormoon’s technology makes navigating complicated data compliance simple, the company said. This gives organizations access to regularly updated knowledge and a cost-effective way.
By combining Kormoon with Privitar’s data privacy and modern data provisioning solutions, data executives can streamline and automate compliance to ever-changing privacy rules and regulations.
Cerberus Sentinel has completed the acquisition of CyberViking, a cybersecurity company based in Georgia and Oregon. Cerberus is a cybersecurity consulting and managed services firm based in Scottsdale, Arizona.
CyberViking is now a wholly owned subsidiary of Cerberus Sentinel.
CyberViking specializes in application security services, and incident response and threat hunting. It also assists in the creation and management of security operations centers. It has advised many Fortune 100 companies across the globe.
Logically, a 2022 MSP 501 honoree, has acquired Cornerstone IT. Based in Mentor, Ohio, Cornerstone brings nearly 30 years of expertise in all things security.
This includes data backup and recovery, technical assistance center and field service. It also includes antivirus malware and spyware protection, firewall protection and design, network infrastructure security and more.
This latest acquisition is Logically’s 11th since 2019. The purchases have been part of the company’s overarching strategy to enhance the company’s footprint throughout the United States.
Manchester-based managed services provider Everything Tech has been acquired by Managed IT Services Group (MITSG). Everything Tech will become the flagship brand in the group. Manchester will become the company’s national headquarters and will bring the Group’s total headcount to 100.
Founded by Mark Allen and Phil Smith, MITSG is a UK-based managed services provider. The company offers SMEs a full range of managed services around four distinct specialist units – cloud and remote desktop services, networks and security, voice and contact center, and IT support.
“Our vision has always been to provide SMEs with access to real experts across every aspect of the managed IT provision, with customers and staff central to our business,” said chief financial officer Mark Allen.
Layer 3 Communications (Layer 3) merged with MGT, a national solutions and technology services firm. With the partnership, MGT expands its technology offerings to help ensure high-quality operations with advanced, secure information technology infrastructure and cybersecurity solutions available in the public and private sectors.
Layer 3 delivers complex network, security and data center IT deployments. Additionally, Layer 3 provides custom MSP solutions designed to drive efficiencies across all aspects of its customers’ IT operations. Layer 3 comes with 128 experienced IT professionals, adding to MGT Technology’s current platform of nearly 100 certified cybersecurity engineers.
The company also brings a broad client base from across eight offices. These include education, state and local agencies, health care, manufacturing, commercial, and Fortune 500 companies.
Connection Capital-backed Mode Solutions acquired Cambridgeshire-based IT Managed Services provider, EACS.
The move enables UK businesses to access digital transformation services and solutions from a single source. The business was supported by a debt refinancing through BlackRock with additional acquisition funds available from both BlackRock and Connection Capital. The company will now offer UK businesses a trifecta of services covering managed IT, communications and document management.
With this acquisition, Mode expands its capability into IT managed services and expands its geographic reach.
PentaFour Solutions acquired the business and assets of Winterhawk Consulting, a former subsidiary of Pathlock.
PentaFour recently made the decision to expand its ERP and cloud portfolio to include other hyperscale niche services, including GRC. Acquiring WHC provides deep expertise in GRC products, including Pathlock and SAP GRC.
The Pathlock product suite monitors and identifies high risk access and transactions across more than 140 business-critical applications. PentaFour recently attained a “platinum” competency, demonstrating a commitment to meet Pathlock customers’ evolving needs in today’s cloud-first world.
Acquiring WHC gives PentaFour the resources to accelerate their multi-ERP & GRC strategy.
Spire Capital Partners-backed Dynamic Quest acquired Hargray’s managed IT services division. Hargray Managed IT is a carve-out from Hargray, a Cable One company.
Dynamic Quest, led by CEO and Founder Javier Gomez, has a vision to become a regional leader in the southeastern United States with this acquisition.
Hargray Managed IT offers managed network services, hardware as a service, cloud hosting and others for SMBs. The company’s customer base is primarily in South Carolina and Georgia. The Hargray Managed IT team members will join Dynamic Quest and continue to serve their client base in the Southeast markets.
Converge Technology Solutions has signed definitive agreements to acquire PC Specialists (dba Technology Integration Group (“TIG”)). TIG specializes in optimized performance solutions and critical business support. The company is headquartered in San Diego, with 20 offices across North America,
TIG offers custom-built IT solutions for clients around the globe, with a large presence in the United States and Canada. The company offers software and hardware procurement, discovery assessments and strategic planning.
It also offers deployment, data center optimization, IT asset management and cloud computing capabilities. TIG’s client base is in enterprise, government, education and SMB markets.
Meriplex just announced the asset acquisition of Louisiana-based managed service provider Verma Systems.
Verma Systems has been an IT and consulting partner for businesses in Baton Rouge and across Louisiana for 31 years. It provided personalized solutions to clients. which help them to leverage IT and technology to enhance business efficiency.
Meriplex focuses on strategically acquiring businesses in leading markets in order to establish a regional presence and acquire talent to support its increasing large organic and inorganic growth.
ePlus just acquired the business of Future Com, based out of Texas. The acquisition will give access to enhanced engineering, sales and services delivery capabilities in the south central U.S. It will also bolster the skills and expertise surrounding ePlus’ growing cybersecurity practice.
Future Com is an established cybersecurity provider that offers hardware, software, support and consulting services to top enterprises, midmarket businesses, and health care, government and educational entities.
The acquisition closed on July 16. Financial terms were not revealed.
MSP 501er Thrive bought DSM, a Florida-based provider of managed IT services to government agencies. DSM’s existing government and corporate clients will benefit from Thrive’s next-gen managed cybersecurity, the companies said.
In addition, Thrive’s global cloud footprint and Microsoft collaboration services strengthen its offerings to state, local and education (SLED) agencies across the U.S.
DSM is the third acquisition by Thrive in Florida in the last six months. It builds upon its established presence in the Southeast. Considered a top-ranked MSP, Thrive came in 50th on the 2022 Channel Futures MSP 501 list.
Thrive also bought Connecticut-based Edge Technology Group, an IT service provider for alternative investment managers.
The acquisition adds new offices and data centers across the United Kingdom, Australia, Singapore, Hong Kong and the Philippines. Edge clients include hedge funds, private equity firms, family offices and asset managers. They will now benefit from Thrive’s next-generation managed cybersecurity, collaboration and cloud services, the company said.
Founded in 2007, Edge serves more than 300 hedge fund, asset managers, private equity, REIT and wealth management clientele. It provides public cloud configurations that address the distinct business needs of a disparate client base. Edge Technology Group has 265 employees that include a team of client-centered IT strategists and engineers.
Park Place Technologies acquired Riverstone Technology, a third-party maintenance and support provider based in Atlanta.
The acquisition will provide more products and services to Riverstone Technology‘s client base. Those include automated monitoring and a portfolio of managed services.
Riverstone Technology offers third-party maintenance and support for storage, network and server devices. The business supports all major OEM brands and serves more than 475 clients across six continents.
This is Park Place Technologies’ (No. 226 on the 2022 MSP 501) third acquisition of 2022 and the 21st since 2016.
Park Place Technologies acquired Riverstone Technology, a third-party maintenance and support provider based in Atlanta.
The acquisition will provide more products and services to Riverstone Technology‘s client base. Those include automated monitoring and a portfolio of managed services.
Riverstone Technology offers third-party maintenance and support for storage, network and server devices. The business supports all major OEM brands and serves more than 475 clients across six continents.
This is Park Place Technologies’ (No. 226 on the 2022 MSP 501) third acquisition of 2022 and the 21st since 2016.
Mergers and acquisitions are still happening left and right, with the strong pace set earlier in the year not slowing. In 2021, deals topped $5 trillion, reaching new records, and 75% of global dealmakers predicted that this space will remain hot in 2022.
Well, it has indeed.
Beyond M&A activity, the amount of private investment pouring in continues to surge. Private equity firms and other investors are seeing the value of the channel like never before.
Deals have spanned the gamut, from names like Vendasta and Dataprise to players such as Cerberus Sentinel and Charles IT.
Scroll through the images above to see a sampling of the latest and mergers and acquisitions and investment deals in the IT/MSP channel in 2022.
Want to contact the author directly about this story? Have ideas for a follow-up article? Email Allison Francis or connect with her on LinkedIn. |
About the Author(s)
You May Also Like