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Small Business Mergers and Acquisitions: 5 Lessons Learned
Posted February 8th, 2012 by Joe Panettieri
As the merger and acquisition trend continues across the managed services market, I figured it’s time to weigh in with a few of my own experiences. It has been roughly five months since Penton Media (a big company) acquired Nine Lives Media (a small media business and parent of MSPmentor). The Penton-Nine Lives combo has worked out really well. But I must also concede: I’ve made my share of mistakes since the M&A deal was announced. Here are five such mistakes, and the things I’d do differently next time around.
Dimension Data Acquires on Xigo En Route to Becoming Full MSP
Posted February 8th, 2012 by Nicholas Mukhar
Dimension Data, an IT solutions and services provider, has acquired the Xigo, a telecom expense management (TEM) solution provider, as part of its broader plan to become a complete managed communications services provider.
Ironic: How A High Valuation Can Destroy Your Company
Posted February 6th, 2012 by Joe Panettieri
How’s this for ironic: Many of us in the high-tech sector work tirelessly to raise our company valuations. But sometimes lofty valuations and unreasonable expectations can destroy the very businesses we’ve worked so hard to build. Skeptical? Consider this cautionary tale involving Ziff Davis Enterprise, which spent a decade trying to overcome two unrealistic valuations (set in 1999 and 2007) that triggered lofty, insurmountable debt levels.
BMC Acquires Numara, ManageEngine Responds
Posted February 6th, 2012 by Nicholas Mukhar
BMC Software‘s recent buyout of Numara Software, a SaaS company, has potential implications for the IT management market. And some potential rivals such as ManageEngine are responding with competitive statements.
SolarWinds Acquires EminentWare for Patch Management Software
Posted February 2nd, 2012 by Nicholas Mukhar
SolarWinds, the IT management software provider, has acquired EminentWare, a Windows server and workstation patch management software provider. SolarWinds VP of Network Management Sanjay Castelino offered MSPmentor some insights on where the company is heading next.
Managed Services Merger: Aldridge and Rafte Target Texas
Posted February 2nd, 2012 by Nicholas Mukhar
The Aldridge Company, a technology and cloud integrator for SMBs, has merged with Rafte & Company, a business and technology consulting firm, to offer a more comprehensive IT support offering. Financial terms were not disclosed. Here’s a little more background on both Texas-based companies, as well as what the merger means for both Aldridge and Rafte business customers.
Managed Video Services Acquisition: AVI-SPL Buys Iformata
Posted January 27th, 2012 by Nicholas Mukhar
AVI-SPL, a video communications provider, has acquired Iformata Communications LLC, a managed video services provider. Under the terms of the deal, AVI-SPLwill take over Iformata’s Video Network Operations Center (VNOC) business and its VNOC Symphony management platform. Overall, AVI-SPL is adding a suite of end-to-end automation services that includes call setup, intelligent framing, automated monitoring and event correlation, as well as a new managed conferencing offering.
Net Optics Acquisitions Target Network Monitoring, Analysis
Posted January 24th, 2012 by Nicholas Mukhar
Net Optics, which develops network monitoring solutions, has made two acquisitions in an attempt to expand its global reach and provide its customers deeper and more insightful network reports. Specifically, Net Optics acquired TripleLayer (an Australian technology distributor) and TripleLayer’s sister company nMetrics (a network and application software provider).
Photizo Acquires Lyra: Managed Document Services Research
Posted January 11th, 2012 by Nicholas Mukhar
Photizo Group, a managed print services research and consulting firm, has acquired Lyra Research, a research and consulting company that has strong ties to the international imaging industry.
Update: outsourceIT Considering Two More Acquisitions
Posted January 10th, 2012 by Joe Panettieri
When outsourceIT and GoBeyondIT merged today, MSPmentor went seeking more information from outsourceIT CEO Craig Guice. We’re curious to know how the combination of a managed services provider (MSP) and cloud services provider (CSP) will ultimately move forward. Guice says the combined company will be an MSP plus a cloud services provider that works with VARs and channel partners. Plus, outsourceIT may be close to buying at least two more companies. Here’s why.
MSP and Cloud Services Merger: outsourceIT and GoBeyondIT
Posted January 10th, 2012 by Joe Panettieri
outsourceIT and GoBeyondIT are merging. outsourceIT is a large managed services provider (MSP) and an MSPmentor 100 company. GoBeyondIT is a cloud services provider (CSP) with a hosted desktop service for SMBs and large enterprises. The combined company, which will accelerate a VDI (virtual desktop infrastructure) strategy, has more than $15 million in revenues and 70 employees. It’s the latest in a growing list of MSP mergers and acquisitions so far in 2012. Here’s how outsourceIT and GoBeyondIT will march forward.
LogMeIn Acquires Bold Software: Remote Support and Live Chat
Posted January 10th, 2012 by Nicholas Mukhar
LogMeIn has acquired Bold Software, a web chat and customer communications software company, for $16.5 million. LogMeIn plans to integrate LogMeIn Rescue — a remote support product for help desks and call centers — with Bold Software’s BoldChat platform.
ePlus Buys Cisco Managed Services Provider VantiCore
Posted January 9th, 2012 by Joe Panettieri
ePlus Technology Inc. has purchased VantiCore LLC, a Cisco-centric managed services provider in New Hampshire. The move will allow ePlus to expand its unified computing and managed services footprint in New England. The ePlus-VantiCore deal is the latest in a growing list of MSP M&A agreements announced since January 1, 2012.
Best Buy and mindSHIFT: Analyzing MSP And Cloud Services Valuations
Posted January 5th, 2012 by Joe Panettieri
Now that Best Buy (BBY) has completed the mindSHIFT acquisition, let’s take a much closer look at the financial aspects of the managed services and cloud services acquisition. MSPmentor has gathered some hard-to-find financial metrics about mindSHIFT’s business. Examine the numbers and you may get a better feel for managed services provider (MSP) and cloud services provider (CSP) valuations.
Mergers and Acquisitions: 7 MSPs Acquired Since New Year 2012
Posted January 5th, 2012 by Joe Panettieri
MSPmentor concedes: Our math isn’t exactly right. But using some fuzzy logic, we’ve spotted seven mergers and acquisitions within the managed services market since the start of 2012. And we’re only five days into the New Year. The latest deal involves Xerox buying LaserNetworks, a managed print services specialist. Are more deals coming? Absolutely yes. Here’s a brief look at the next potential deal — which may be announced in late January or February 2012.
Managed Print Services Acquisition: Xerox Buys LaserNetworks
Posted January 5th, 2012 by Nicholas Mukhar
Xerox Corp. has acquired LaserNetworks, a managed print services (MPS) expert in Ontario, Canada. The Xerox-LaserNetworks combination signals accelerating interest in managed print services. But Xerox will also need to carefully balance its direct vs. channel efforts with MPS.
VeriFone, Point International Pursue Retail Managed Services
Posted January 4th, 2012 by Nicholas Mukhar
VeriFone Systems Inc. has completed its buyout of Point International. The deal, first announced in mid-November 2011, positions VeriFone to offer retailers a range of managed services while also pushing deeper into Europe.
ConnectWise Capital: Two Years Later
Posted January 3rd, 2012 by Joe Panettieri
ConnectWise CEO Arnie Bellini and President David Bellini have spent the past two years preparing for software industry convergence and competitive wars. The result: ConnectWise and its investments — most notably LabTech Software and Quosal — have been in growth mode. But ironically, the anticipated MSP software wars never fully emerged. Here’s the back story.
Cloud Services Providers, Like MSPs, Pursue Acquisitions
Posted January 3rd, 2012 by Joe Panettieri
Move over, managed services providers (MSPs). Your close cousins — cloud services providers — also are pursuing mergers and acquisitions at a frantic pace. The latest evidence — Internap buying Voxel for $30 million — arrived earlier today. In some ways, the Internap-Voxel combination also involves a touch of managed services.
MSP Mergers and Acquisitions: 2012 Starts With A Bang
Posted January 3rd, 2012 by Joe Panettieri
The managed services provider (MSP) market is starting 2012 much in the way it started 2011: With plenty of MSP merger and acquisition activity. We’re tracking all of the M&A deals on MSPmentor’s MSP Merger and Acquisition page. As of this writing, four M&A deals involving MSPs have either been announced or completed since the New Year. What’s driving the M&A activity?
Managed Services Acquisition: Birch Buys AstroTel Assets
Posted January 3rd, 2012 by Joe Panettieri
Within the managed services market, 2012 is starting with a merger and acquisition feeding frenzy. The latest deal involves Birch Communications buying the operating assets of AstroTel. This is the 14th acquisition for Birch since 2006. Here are details.
Beyond Retail: Best Buy Completes mindSHIFT Acquisition
Posted January 3rd, 2012 by Joe Panettieri
Best Buy’s acquisition of mindSHIFT is now complete, and mindSHIFT is now “officially a 100% owned subsidiary of Best Buy,” according to mindSHIFT CEO Paul Chisholm. So should customers — and rival managed services providers — expect big changes over at mindSHIFT? The simple answer is no. I believe mindSHIFT has a clear long-term plan for cloud services and managed services, while Best Buy has its hands full trying to bolster its traditional retail business. Here’s the background.
Managed Services Acquisition: Presidio Completes INX Buyout
Posted January 3rd, 2012 by Nicholas Mukhar
Presidio Networked Solutions has completed its buyout of INX Inc., an infrastructure solutions integrator and fellow managed services provider. The $85 million deal, which first surfaced in November 2011, blends two VAR500 companies that have a combined 1,800 employees.
