Significant M&A Activity Among MSPs Continues in 3rd Quarter
Recent frenzy of MSP M&A activity saw companies such as The Synetek Group and Netsurit expanding their capabilities.
September 9, 2021
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Electric recently acquired Techvera, an IT support provider based in North Texas. Techvera has been in the IT service space for over 20 years. Originally founded as a repair shop known as “Geek on Wheels,” the company pivoted offerings to providing managed services in 2015, and rebranded to Techvera shortly after. The company serves over 90 clients in the Dallas-Fort Worth market and across the United States. Techvera’s expertise spans several industries including legal, financial, oil and energy, transportation and logistics, and construction and manufacturing.
The acquisition of Techvera will add expert IT support to Electric’s deep bench of over 100 IT professionals today. It will also further strengthen Electric’s offerings. This partnership is another step in Electric’s path towards becoming a top IT provider — continued through both organic growth and strategic acquisitions of IT MSPs and related technologies.
Electric boasts over 400 customers with more than 30,000 employee end-users through its IT platform today, experiencing significant growth since its inception in 2016. Over the last year alone, Electric more than doubled its business, increased headcount to over 400 employees, and surpassed the 30,000 end-user mark. The acquisition of Techvera follows significant investments in Electric’s own offerings, with the acquisition of one of New York’s top MSPs, Sinu in November, and its Series C $40M funding raise in February. The company continues to strategically expand its services and market presence.
Millennia Technologies, a provider of UCaaS voice integration, and Fusion IT, a technology MSP, MSSP and cybersecurity firm, recently announced a strategic merger of their growing technology businesses.
Business demands for fast-paced, secure, and scalable information and integrated voice technology solutions have evolved rapidly over the last 25 years. In response to market demands, the two specific brands look to expand their solution offerings and their combined client’s technology share.
The companies partnered on several projects throughout 2019, which led to the leadership’s decision to make the merger official.
Dallas-based The Synetek Group is acquiring SabinoCompTech, a 2021 Channel Futures NextGen 101 honoree. The merging of the two companies brings together two globally recognized service providers. Each brings individual niche strengths and expertise to the table, which they say will create more value for their customers.
The SabinoCompTech team will integrate with Synetek’s group of IT professionals. Both Synetek and Sabino customers will get the added value of a larger team available to them. They will also get rich expertise that comes with a joining of forces, the companies said.
SabinoCompTech, now part of The Synetek Group, made our 2021 NextGen 101 list, coming in at No. 14.
Evergreen Services Group recently acquired 4EOS, a managed IT services provider based in Fort Wayne, Indiana. 4EOS will join the platform company NetGain Technologies. This marks the fifth acquisition Evergreen Services Group and NetGain Technologies have completed together since 2019.
Clients of 4EOS will continue to receive outstanding service and support from the existing 4EOS team that is familiar with them and their environment. 4EOS will benefit from additional resources and investments in marketing, sales, human relations, and finance as part of this partnership.
Founded in Fort Wayne, Indiana in 2002, 4EOS is a managed service provider that offers comprehensive network managed services, network design and installation, security, and data center services. To provide a complete business technology solution, the 4EOS group of companies includes SafeHouse Data Center and Midwest VOIP.
Adding 4EOS to the NetGain Technologies family expands the organization footprint to ten locations in eight different states across the Midwestern and Southeastern U.S.
Netsurit has acquired Real Time Consultants, Inc., an MSP based in New Jersey and servicing the New York Metro area. The acquisition of Real Time Consultants, Inc. is part of Netsurit’s US market expansion and will provide the company with a strong presence in New Jersey.
Netsurit is on track to achieve $30 million in revenue and over 65 percent in annuity this year. The acquisition of Real Time Consultants, Inc is a natural progression in the company’s North American expansion, following the acquisition of Cyber City earlier this year. Real Time brings over 20 years of history and a strong team with experienced and culturally-aligned leaders into the Netsurit fold. This expansion advances Netsurit’s goal to support the dreams of “One Million Doers” by 2025 through a two-pronged growth strategy that combines targeted marketing and acquisition.
Netsurit will continue its expansion in 2021 with the release of the second version of the company’s Netsurit Productivity Monitor tool as well as a new SaaS offering scheduled for the second half of 2021.
Password Boss, a password manager solution provider for MSPs, recently acquired AutoElevate, a provider of automated privileged access management (PAM) software. The acquisition will bring together two security solutions, giving MSPs the ability to better drive security for their own and their clients’ organizations. Terms of the acquisition were not disclosed.
David Bellini, CEO of Password Boss, and Todd Jones, co-founder of AutoElevate, have a combined 50+ years of MSP industry experience. In addition to his role as CEO of Password Boss, Bellini is a founder and CFO of ConnectOn, a Tampa Bay area provider of managed services, cloud services and security services. In 1982, he co-founded ConnectWise, a technology solutions provider for MSPs that was acquired by Thoma Bravo in 2019. Jones, who began as an MSP more than 20 years ago, founded and managed a security-centric MSP practice in Colorado before being acquired in 2016. In 2018, he launched Miami-based AutoElevate to fulfill the need he saw for an MSP-based solution for privilege management.
Bellini will serve as CEO of both organizations. Jones will remain with AutoElevate to manage operations and ongoing technology initiatives.
DSM, a Florida-based leader in data assurance, announced today the acquisition of Cipher Integrations, a Florida-based Managed IT Services provider. This acquisition extends DSM’s delivery of unmatched data assurance solutions which protects core digital infrastructure, guarantees recoverability, and thereby reduces costly downtime.
As part of the acquisition, DSM will integrate Cipher’s offerings and engineering team into its own. This is a win-win for both companies and their clients, adding talented staff to the continuously growing DSM team, and strengthening offerings for Cipher clients.
DSM’s managed services offering, data protection suite, and disaster recovery platform take a rapid recovery approach to data assurance. The ability to survive and recover quickly from a data breach or ransomware attack ensures business continuity, and DSM’s expert team keeps client’s systems operational in its highly available/scalable platform. The acquisition of Cipher broadens DSM’s client base and strengthens these offerings to further provide enterprise-level results while maintaining a personalized client experience.
Frontline Managed Services recently acquired LOGICFORCE, a legal IT consulting service. Through this acquisition, Frontline Managed Services adds 50 professionals to its IT Managed Services staff, bringing the organization to more than 750 employees. LOGICFORCE CEO Gulam Zade and CFO & COO Bret Babcock will join the Frontline Managed Services management team.
The acquisition also brings LOGICFORCE’s proprietary Synthesis E-IT Secure (SEITS) service, a comprehensive assessment of law firm technology and business goals that results in an actionable blueprint for increased profitability, to the Frontline Managed Services platform.
Through the acquisition, Frontline Managed Services adds over 100 new law firm clients ranging from the middle market to large, global firms to its existing client base, which includes more than 40% of the AmLaw 200 and hundreds of mid-size firms. Following this partnership, LOGICFORCE will merge under the banner of Frontline Managed Services with the benefit of the additional support, scale and management afforded by joining the global provider. Clients will also benefit from the opportunity to leverage the full-service managed services platform offered by Frontline Managed Services’ “Office in a Box” approach to synergistic law firm operations. This includes its Administrative, Financial and IT Managed Services lines.
Frontline Managed Services recently acquired LOGICFORCE, a legal IT consulting service. Through this acquisition, Frontline Managed Services adds 50 professionals to its IT Managed Services staff, bringing the organization to more than 750 employees. LOGICFORCE CEO Gulam Zade and CFO & COO Bret Babcock will join the Frontline Managed Services management team.
The acquisition also brings LOGICFORCE’s proprietary Synthesis E-IT Secure (SEITS) service, a comprehensive assessment of law firm technology and business goals that results in an actionable blueprint for increased profitability, to the Frontline Managed Services platform.
Through the acquisition, Frontline Managed Services adds over 100 new law firm clients ranging from the middle market to large, global firms to its existing client base, which includes more than 40% of the AmLaw 200 and hundreds of mid-size firms. Following this partnership, LOGICFORCE will merge under the banner of Frontline Managed Services with the benefit of the additional support, scale and management afforded by joining the global provider. Clients will also benefit from the opportunity to leverage the full-service managed services platform offered by Frontline Managed Services’ “Office in a Box” approach to synergistic law firm operations. This includes its Administrative, Financial and IT Managed Services lines.
Managed services mergers and acquisitions have spiked again recently, with at least eight deals disclosed within a few weeks.
Motivated by a range of factors, the deals capture a lot of what we’re seeing in the industry. These include the need for integrated voice technology solutions, greater geographic reach, access to network managed services, and the ability to drive better security solutions.
Click through our gallery above to view the rundown.
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