Sourcepass Wraps Acquisition, Funding Round, Wants to Be Largest SMB-Focused MSP

Sourcepass has acquired Network Solutions and Technology and completed a round of funding, with commitments of $70 million in capital. 

This latest round of funding comes via newly established relationships with lead growth capital partner Metropolitan Partners Group. Also involved were several experienced angel investors and Wedge Venture Partners. This positions Sourcepass to increase its SMB technology footprint across North America.

Sourcepass Background

Sourcepass focuses on enhancing overall IT services. Designed to deliver an omnichannel, end-to-end approach, the company focuses on digitizing the IT services experience for SMBs. It’s all about connecting those customers with the right technology for their needs at the best value. This model gives SMBs access to tools that have been unavailable to them until now, the company said. There are 30 million SMBs that need help with their IT approach and solutions. Expect this to increase to an addressable market of more than $100 billion by 2025. The demand for remote work IT support and integrations to serve user and customer needs will play a huge part here.

The Acquisition

Moving forward, NST will serve as the platform company for Sourcepass’ organic and inorganic growth. The plan is for all future acquisitions to be integrated into the NST operating model. Sourcepass has expanded its reach with the addition of NST’s locations in New York, Connecticut and Tennessee. Sourcepass will extend its digital capabilities via interactive web portals and mobile applications to NST’s 400 SMB customers. This is across 38 states and over 20,000 endpoints. 

Sourcepass’ Chuck Canton

“We could not be more pleased to share that we have closed on the acquisition of NST and to have fully retained NST’s leadership team as they will play a pivotal role in our plans to advance the industry,” said Chuck Canton, Sourcepass chairman. “This achievement and latest round of funding affirms the market opportunity to enhance and modernize current IT service offerings and how they are delivered to SMBs, as well as the belief in the value and necessity of the Sourcepass mission.”

NST’s Matthew Brown

“Our team at NST looks forward to the future and what we will do together with Sourcepass as now a combined enterprise,” said Matthew Brown, NST CFO and co-founder. “Together, utilizing Sourcepass’ model and technology coupled with our industry experts, we can truly drive the transformation of IT services to bring innovation to the SMB market and support our clients in enhancing their competitive position.” 

The Round of Funding

The NST acquisition and funding round positions Sourcepass to continue to build out its digital ecosystem. It also sets it up to make more acquisitions and target its goal of completing seven acquisitions this year. The company will also invest in a go-to-market strategy that makes it easier for SMBs to procure IT services overall.

“Our team was extremely selective with our pool of interested investors. We ultimately chose Metropolitan Partners Group, whose passion matched our own, as our lead growth capital partner,” Canton added.

“We congratulate Sourcepass and NST for completing this strategic acquisition. Sourcepass’ mission presents a fantastic market opportunity, and we are proud to join them on their journey,” said Richard Lin, managing director at Metropolitan Partners Group. “The customer-obsessed mentality Sourcepass embodies, coupled with its fresh, dynamic take on addressing existing gaps in IT solutions that affect SMBs worldwide, position it for robust success. They bring an innovative vision and a commitment to becoming agile operators and entrepreneurs that is very exciting to be a part of.”