Top IT, MSP M&A, Private Investment Deals of 2022 So Far
M&A activity is at an all-time high, and shows no signs of slowing. Here are some of the big deals of 2022 so far.
January 21, 2022
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Evo Security announced a $3.9M series seed round led by Sorenson Ventures, Inner Loop Capital, Secure Octane, Channel Angels and more.
Founded by tenured entrepreneur, engineer, and investor Michael Roth, Evo is a growing team of technical and channel veterans focused on the unique, underserved and overlooked challenges MSPs face when attempting to manage IAM for their broad customer base.
“Identity and access management is not new for the enterprise, but it is for over half of MSPs and their SMB customers around the world,” said Roth. “With the attack surface expanding rapidly into the SMB space, and IAM emerging as the cornerstone of a zero-trust approach, it’s time MSPs have a purpose-built solution that can easily fit into their managed stack. We’re incredibly excited to draw a line in the sand and serve our MSP Partners in a way that is long overdue.”
Cerberus Cyber Sentinel Corp., a cybersecurity consulting and managed services firm based in Scottsdale, Arizona, acquired True Digital Security, a cybersecurity operations and compliance company with offices in New York, Florida and Oklahoma.
Under the terms of the agreement, True Digital will become a wholly owned subsidiary of Cerberus Sentinel. Rory Sanchez, CEO of True Digital, will continue to manage his team of professionals and serve as an executive of the company.
“True Digital is an exceptional cultural fit for the Cerberus family of companies. Together we will keep businesses safe as their managed compliance and cybersecurity, plus culture, provider (MCCP+),” said David Jemmett, CEO and founder of Cerberus Sentinel. “This acquisition expands and complements our team of deeply experienced cybersecurity professionals and executives, bringing our clients best-of-breed technology, proven processes, and people.”
Financial terms of the agreement were not disclosed.
SilverSky completed the acquisition of Burlington, Massachusetts-based Cygilant.
As a cybersecurity-as-a-service provider, Cygilant operates a security operations center (SOC) in Belfast, Northern Ireland, and also boasts some of the world’s most notable Ph.D.-level talent focused on cybersecurity, advanced networks and data science. The addition of Cygilant’s U.K.-based delivery center complements the current SilverSky footprint in Asia and North America while expanding SilverSky’s access to European markets.
In October 2021, SilverSky announced that ITOCHU International, the North American flagship company of Tokyo-based ITOCHU Corp., made a strategic investment of $31.5 million in SilverSky. Additionally, in August 2021, SilverSky announced the completed acquisition of New Jersey-based Advanced Computer Solutions Group (ACSG), which added a notable customer base within the U.S. education sector and marked the company’s first acquisition in a series of planned growth opportunities.
“Alongside our recent growth-related announcements, this acquisition of Cygilant, a cybersecurity-as-a-service and threat-intelligence powerhouse, helps to further galvanize our efforts to globally expand the SilverSky presence as well as retain and nurture some of the industry’s best cybersecurity and data science talent,” said Richard Dobrow, CEO at SilverSky. “Cygilant shares our commitment to rich-service offerings that are unmatched in the industry. We’re pleased to welcome the Cygilant team and their customers.”
VC3 acquired CW Technology, a provider of enterprise-quality IT management services in Minnesota. The addition of this firm will expand the VC3 solution portfolio to municipal and commercial clients in Minnesota and adds a local presence of high-caliber operators to the VC3 platform.
“Similar to CW Technology, we made the decision to serve small- and medium-sized organizations with solution-oriented technology services that will meet their specific requirements,” Sandy Reeser, VC3’s CEO, said. “Collectively, our teams have the depth and breadth of knowledge in managed services, applications, software development, websites and industries to help meet a variety of business and local government needs. Our clients recognize our ability to solve a wide range of challenges, offer multiple options to solve problems, and communicate results effectively. VC3 continues to strengthen its existing presence nationally, where we already serve many municipalities and organizations across the country and carry several state municipal leagues endorsements. With decades of experience, together as a team, we will continue to successfully serve clients of all sizes in Minnesota and throughout the United States.”
“With VC3’s strong presence and similar core values, it was clear to me that a partnership made the most sense for our employees, our clients, and the company as we continue to grow and evolve in this changing environment,” David Manion, CW Technology’s CEO said. “This acquisition will empower both CW Technology and VC3 to provide more tailored services to more clients.”
Dataprise acquired Global Data Vault, a disaster-recovery-as-a-service (DRaaS), backup-as-a-service (BaaS) and modern data protection solutions company. The addition of Global Data Vault creates one of the industry’s broadest portfolios of integrated data protection and cybersecurity offerings to solve client’s toughest business resilience, risk mitigation and compliance challenges.
“Clients turn to Dataprise to be their one strategic IT partner, which requires us to bring the broadest portfolio of services powered by the best technology and deepest expertise. Today, the mandate for a holistic cybersecurity and data protection strategy is a top priority for our clients,” said Steve Lewis, CEO of Dataprise. “Global Data Vault is a powerful addition as they bring industry leading cloud-based data protection solutions that bolster our premier cybersecurity portfolio, top-notch employees, a strong Veeam partnership, and relentless focus on client success.”
Founded in 2004, Global Data Vault is a recognized leader in the BaaS and DRaaS industry and holds the distinction of being a platinum Veeam Cloud & Service Provider. Global Data Vault’s mission is to protect organizations’ critical data with modern data protection strategies to ensure business continuity and eliminate downtime. Headquartered in Dallas, Global Data Vault protects hundreds of clients across the United States, Canada and the United Kingdom.
Charles IT acquired NST Systems to expand its offerings throughout Connecticut and metro New York.
Charles IT specializes in meeting the IT needs of highly regulated industries, helping clients navigate disaster recovery, cloud services and complex compliance, from HIPAA to CMMC and DFARS.
NST Systems brings more than 27 years of experience in IT consulting and managed IT services, with an emphasis on data loss prevention, disaster backup and recovery, 24/7 monitoring, and live support for small and midsize businesses.
“We’re very excited to bring on board a company with such a consistently high level of customer service that mirrors our own core values, and we look forward to continuing to provide clients with fast response, improved ROI on their IT, and confidence in their systems,” said Foster Charles, founder and CEO of Charles IT.
Entech, an MSP serving business partners in Fort Myers, Naples, Sarasota, Bradenton and Tampa Bay, Florida, completed its merger with ITVantage. This brings together two MSPs serving southwest Florida and nearly doubling the size of the company. Both companies have built strong reputations for comprehensive network and managed business IT solutions, supporting business clients of all sizes throughout the state. By joining talent and service offerings, the combined entity will now operate as Entech and support more than 17 different vertical industries, increasing the company’s reach and growth potential.
“We are thrilled to announce Entech’s merger with ITVantage. Through our years in competition, a respectful friendship formed between our owners and leadership teams. The values and cultures of our organizations overlap in many ways,” said Jake Spanberger, Entech’s CEO. “Both companies are truly committed to making our communities in Florida a better place to live, work and play. We realized, together, we can double down on our commitment of enabling people to do what matters for the betterment of our employees, our client business partners and the communities we serve.”
With decades of experience, the newly combined team, primarily comprised of senior-level IT engineers and experienced desktop technicians, will now work together to ensure that each client business partner receives the highest level of support. Pooling both resources and talent, including ITVantage’s SOC 2 Type 2 compliance, Entech will offer a full range of managed IT services such as IT project delivery, public and private cloud services, business continuity, backup and data protection, cybersecurity, risk management and compliance, and health care technologies.
Microsoft partner sa.global announced its acquisition of Dynamic Consulting. The deal grows sa.global’s Americas business, with Dynamic Consulting president Jonathan Stypula becoming president of the Americas for sa.global.
Dynamic serves approximately 250 clients with a significant focus on project manufacturing, industrial equipment manufacturing and field service organizations. sa.global expects to benefit from Dynamic Consulting’s Microsoft Dynamics on-premises to cloud migration experience.
“The combined team now makes us the single largest, independent Microsoft partner that focuses purely on Microsoft business applications and modern workplace,” said sa.global chief revenue officer Matt Calderwood.
Vendasta is buying MatchCraft, the software company, from Advance Local. MatchCraft specializes in search, display and social media advertising solutions. These are aimed at digital marketing agencies and resellers who serve SMBs at scale.
The acquisition brings MatchCraft’s technology – including its flagship AdVantage platform – together with Vendasta’s end-to-end platform. This will extend new offerings to each company’s customers. As a result, partners will be able to manage thousands of clients’ search engine marketing, display and social advertising campaigns. This is while using Vendasta’s platform tools built to market, sell, bill, fulfill and deliver critical solutions to SMB clients.
“MatchCraft and Vendasta have been longtime friends, and we’re fortunate to have them join the Vendasta team,” said Vendasta CEO Brendan King. “This partnership will bring MatchCraft’s enterprise-level technology to all our channel partners, allowing them to have a superior technology stack only large companies could previously afford. We know MatchCraft exceeds expectations because we hear it from many of their partners — who happen to be our partners, too.”
Founded in 1998, MatchCraft provides technology to partners headquartered in 22 countries. MatchCraft will continue serving its existing and future partners as it does today. The company expects valuable integration and connectivity opportunities in 2022.
INTELITECHS, a Utah-based managed IT services provider, acquired Total Cloud IT. The acquisition opens the door to expansion by INTELITECHS into serving a broader group of small to midsize businesses across the country with both managed IT and cloud computing services.
With today’s home-based workforce, there is a higher level of concern with data access and end-user security.
“So many companies now have more employees working from home than in the office using company and non-company devices to access sensitive data,” said Eric Sessions, co-founder. “We see a significant increase in need for our services like Office 365 security, directory synchronization, multifactor authentication, spam filtering and DMARC/DKIM/SPF configuration and monitoring,” he added.
INTELITECHS provides managed IT services and IT department staff augmentation by serving as its customer’s outsourced IT department. Its goal is to become clients’ “geek-speak-translators” and to use IT to drive business growth and profitability. The company serves clients across the country with managed IT services, managed backup, 24/7/365 monitoring and a wide variety of other sophisticated security services. The company also assists clients with hardware sales, cloud-based computing, server migration and Office 365 support.
OST, a Midwest-based digital and IT consultancy, acquired Texas-based cloud service provider Stratum Technology. This acquisition expands OST’s cloud services capabilities thanks to Stratum’s deep technical expertise and certifications in both AWS and Microsoft. Stratum joins OST with architects, engineers and project managers who have developed relationships with top partners and carry advanced specializations such as the Microsoft Azure Expert Managed Services Provider designation.
For both organizations, the acquisition means that clients will have access to more support, experience and expertise than ever before.
“For 25 years, OST has walked alongside clients to architect, build and manage how and where technology runs,” said OST president and CEO Meredith Bronk. “The acquisition of Stratum Technology is a reflection of rapid acceleration in this space and ensures that OST continues to drive meaningful and valuable outcomes for our clients.”
In addition to expanding cloud services, this acquisition pairs two of the nation’s leading experts in Microsoft Cloud for Healthcare. This reinforces OST’s position as a premier partner for Epic cloud implementations in the United States.
This acquisition also comes on the heels of last year’s integration of Minneapolis-based design firm Azul Seven, one of several bold moves to target growth opportunities that allow OST to help leading companies accelerate their digital business models.
Following 18 months of successful acquisitions and integrations, CDI (“Computer Design & Integration LLC”) announced that it is continuing with its focus on growth by acquiring Clearpath Solutions Group, a solutions provider primarily servicing the mid-Atlantic, including Washington D.C., Maryland and Virginia.
This acquisition falls in line with the CDI’s East Coast expansion, emphasizing the importance of the D.C./Maryland/Virginia region after purchasing mid-Atlantic companies Plan B Technologies, P5 Solutions and Kintyre. With the addition of High Availability and Candoris in Pennsylvania, an expanded team into Boston, and an office opening in Florida earlier this year, the company has more than doubled in employee count and revenue in less than two years and has secured its foothold throughout the East Coast. In addition, CDI International was added with offices in England and Ireland to service clients with international presence.
Beyond geographical expansion, CDI is focused on key partnerships, including Dell Technologies, Cisco and VMware, each of which is also a strategic partner at Clearpath, a Dell Gold level partner, Cisco Gold level partner, and a VMware Premiere partner. The combined expertise and partnership levels will help strengthen partner relationships as well as the ability to best serve clients. The companies’ similar consultative approach toward working with customers and commitment to growing new relationships with emerging technology providers is evident in their corporate cultures.
Private equity firm Livingbridge has invested in Quorum Cyber, a U.K.-based MSSP (managed security services provider) and MDR (managed detection and response) company that partners closely with Microsoft.
The investment supports Quorum Cyber’s vision to become one of the top Microsoft Security partners worldwide, CEO Federico Charosky asserted.
The investment includes capital to help Quorum Cyber accelerate its growth. It also will help Quorum Cyber enhance its solutions and sales and marketing functions.
Pulsant, a hybrid cloud specialist and operator of an edge computing platform in the U.K., completed the acquisition of a Manchester data center and associated clients from M247 Limited. Located in one of the fastest growing tech hubs in the U.K. and Europe, the acquisition supports Pulsant’s strategy of geographic expansion, enabling the company to extend its edge platform to the city and the Northwest.
Situated within a secure compound in central Manchester, the 6,500 square foot data center provides capacity of around 1MW power, with further investment planned to expand and upgrade the facility. The location complements Pulsant’s existing network of strategically located data centers, offering good transport links and connectivity, including a LINX Manchester point of presence (PoP) on site.
The move is part of Pulsant’s ambitious growth strategy and its first acquisition since receiving investment from Antin Infrastructure Partners in July 2021. The deal includes the data center and transfer of 40 clients and all site staff from M247, who will become a major client of Pulsant and continue to use the data center to serve their own business. As well as delivering services to existing clients from the new data center, Pulsant will seek to bring its full range of colocation and hybrid cloud services to new businesses within the area.
Pulsant, a hybrid cloud specialist and operator of an edge computing platform in the U.K., completed the acquisition of a Manchester data center and associated clients from M247 Limited. Located in one of the fastest growing tech hubs in the U.K. and Europe, the acquisition supports Pulsant’s strategy of geographic expansion, enabling the company to extend its edge platform to the city and the Northwest.
Situated within a secure compound in central Manchester, the 6,500 square foot data center provides capacity of around 1MW power, with further investment planned to expand and upgrade the facility. The location complements Pulsant’s existing network of strategically located data centers, offering good transport links and connectivity, including a LINX Manchester point of presence (PoP) on site.
The move is part of Pulsant’s ambitious growth strategy and its first acquisition since receiving investment from Antin Infrastructure Partners in July 2021. The deal includes the data center and transfer of 40 clients and all site staff from M247, who will become a major client of Pulsant and continue to use the data center to serve their own business. As well as delivering services to existing clients from the new data center, Pulsant will seek to bring its full range of colocation and hybrid cloud services to new businesses within the area.
M&A deals in 2021 topped $5 trillion, reaching new records, and 75% of global dealmakers predicted that this space will remain hot in 2022.
Quite the understatement, as we have seen not just a flurry of mergers and acquisitions this year, but a downright blizzard. And it’s still January!
Beyond M&A deals, the amount of private investment pouring in has reached nearly unfathomable levels. 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 M&A and investment deals in the IT/MSP channel in 2022. Then check out what we thought were the biggest mergers and acquisitions of 2021!
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