Tribrige and Navint have announced a merger of equals to form a national managed service provider that blankets the US. The merged company will specialize in MSP services, enterprise resource planning (ERP), customer relationship management (CRM) and Microsoft SharePoint services. This is the latest deal to land on the MSPmentor M&A Tracker, which follows mergers and acquisitions in the managed services market.
First, a word of caution: I always worry when two companies say they are engaging in a “merger of equals.” History shows there’s no such thing: I realize the merger of equals may refer to dollars, cents and business size. But when it comes to successful mergers, one corporate culture typically survives and a single executive leader typically moves the company forward.
Still, the merging companies are quick to note that they have similar cultures. According to a press release:
For Tribridge and Navint, the merger is as much about blending corporate cultures as it is about expanding service delivery capabilities. All team members will continue in their respective roles, and offices in every region will remain open. Both firms boast a disciplined project implementation methodology, stemming from a strong “Big 5” consulting services heritage that launched the careers of its founders.
Tribrige says it has a strong presence in the souteast and central US regions. Navint says it has a solid presence in the northeast and western regions. Snap the pieces together, and you get a national company that will be known as Tribridge.
Terms of the deal were not disclosed.
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Posted In: Acquisitions
Tags: Managed Service Provider Merger | Managed Services Acquisition | MSP Acquisition | MSP Merger | MSPmentor M&A Tracker
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We’re seeing more M&A conversations taking place between smaller $50.0 revenue companies becoming agressively opportunistic, even though the markets remain chaotic. The SMB and SME markets continue be very competitive, with customer acquisition costs remaining high. The biggest challenge remains getting to scale, since many companies maintain a fixed cost infrastructure that limited profitability until certain thresholds are met.
Dave,
Are you talking about $50 million in annual revenues? That’s a pretty large company, in terms of the overall VAR and MSP community. I would suspect most MSPs looking to sell have less than $10 million in revenue. But that’s just an educated guess.
I suspect that even at the smaller end, that mergers will take place between MSPs in $1-2 million revenue range. We’ve already seen it in Providence with a couple of IT shops who had a mix of VAR and MSP models merging into one company, same mix.
And, Joe, as you so correctly pointed out, there is no such thing as as merger of equals, and it certainly wasn’t the case in this merger.
What will be interesting is to see just how ANY of these mergers, of any size, play out over time…
Jim Van
Logicomm, Inc.
http://www.logicomm-inc.com
Jim: The takeover trend is going global. I was on a Webcast tonight with Tim Dickinson, the head of Kaseya’s Australia business. He noted that MSPs — many of them small companies — have started buying one another.
As people read/hear about such deals please alert me and I will add them to our MSPmentor M&A Tracker.