In addition to the MSP merger and acquisition news coverage below, MSPmentor maintains a comprehensive list of MSP M&A deals that occurred in 2012. We update the list regularly as new MSP mergers and acquisitions occur. Find the MSPmentor MSP M&A list here.
Two well-known managed services providers are finalizing M&A (merger and acquisition) discussions, and the two MSPs will likely announce a business combination in January 2012, MSPmentor believes. The pending deal, which apparently involves two MSPs on the U.S. east coast, will potentially be the first managed services M&A deal announced in 2012.
The IT services provider Dimension Data has acquired two companies — BlueFire and Netforce — as part of an effort to expand its footprint in Asia and Australia. The acquisitions can really be considered one, as the two companies merged their services under the BlueFire name roughly one year ago.
Here’s a quick question: Would you sell your managed services provider business for 10 to 12 times EBITDA (earnings before interest, taxes, depreciation and amortization)? In other words, if your earnings were about $200,000 in 2011, would you sell your MSP business for $2 million to $2.4 million? Before you answer consider this update from Mike Jones, CEO of ETG, one of North America’s top MSPs serving the health care vertical. Jones recently reached an intriguing decision.
As Best Buy works to complete the mindSHIFT buyout by the end of 2011, I’ve reached the following conclusion: Small MSPs need not worry about the deal. Here’s why.
The Zenith Infotech bond default case will apparently have its next court hearing on November 14. In the meantime, Summit Partners apparently is willing to share details about the Zenith RMM purchase from Zenith Infotech — if the details are not disclosed publicly. But will those details really emerge? Here’s the update.
The mindSHIFT executive team, in an apparent email to customers, described Best Buy’s $167 million buyout of mindSHIFT, and the potential synergies from the deal. The memo confirms that mindSHIFT had been seeking “a new investor” for several months. MSPmentor has not directly confirmed the memo’s authenticity. But generally speaking, it looks like the real deal to me. Here’s the memo…
Zenith RMM CEO Michael George is further distancing the company from Zenith Infotech, which recently defaulted on a bond payment. The latest move involves a private video from George to Zenith RMM partners and customers. Although Zenith RMM and Zenith Infotech continue to partner, George in the video said Zenith RMM is not encumbered by Zenith Infotech’s bond issue with debt holders. Here’s a closer look at the video.
When Best Buy announced plans to acquire mindSHIFT Technologies today, the $167 million deal raised numerous questions about the managed services and cloud services markets. Here are the top nine questions MSPmentor will be exploring in the hours and days ahead.
Best Buy is acquiring mindSHIFT Technologies, one of the top managed services providers in the SMB market, for $167 million. The Best Buy-mindSHIFT deal ends a major chapter in the managed services market — and begins a new one as well. Updated, 9:12 a.m. ET, Nov. 7: Here’s a closer look at the potential implications of Best Buy purchasing mindSHIFT.
Presidio Networked Solutions, a managed services provider, has acquired INX Inc., a fellow managed service provider. Presidio will bulk up its staff to over 1,800 IT pros throughout approximately 50 offices across the U.S.
More evidence that e-discovery has entered a consolidation phase comes from Flex Discovery, an Austin, Texas MSP that recently completed an acquisition and has two more in the works. Here’s a look at the strategy.
GFI Software has acquired Monitis, which develops cloud-based network and systems monitoring software. The GFI-Monitis deal surfaces a few weeks before the first GFI User Conference (Nov. 8-9, Orland0, Fla.). Monitis will march forward as its own brand, while also integrating into the GFI Max RemoteManagement platform, which GFI promotes to MSPs. Meanwhile, there are also signs that GFI and Autotask are working more closely together. Here’s why.
All Covered, the nationwide managed service provider and a division of Konica Minolta, has acquired ColdCypress, a Pittsburgh, Pa.-based IT consulting and IT services firm that specializes in Microsoft SharePoint, VMware and PC server virtualization services.
Zenith RMM CEO Michael George continues to draw a cordial but clear line between his company and that of Zenith Infotech, which recently defaulted on a bond payment. While Zenith RMM continues to partner with Zenith Infotech, George says Zenith RMM will also take steps to ensure MSPs have alternative cloud and BDR (backup and disaster recovery) partner solutions from which to choose.
Get a group of managed services providers in a room together and the talk invariably turns to mergers and acquisitions. It’s one of the ultimate goals for some small-business owners – that another company would find enough value in their business to actually want to acquire it. As a result, it’s no surprise M&A was a topic of two panel discussions at the 2011 N-able Partner Summit last week in Scottsdale, Ariz.: One from the buyer’s point of view (acquirer) and the other from the seller’s point of view (acquiree).
All Covered has added a cloud server solution to its suite of outsourced IT services for SMBs throughout the U.S. The cloud servers are designed to host business applications like hosted SQL Server, hosted Exchange Server and hosted SharePoint. Here’s more info on the latest All Covered solution, courtesy of All Covered CIO Tim Crawford.
Avanade, the IT consulting firm and managed service provider (MSP) backed by Microsoft, has acquired eConnex to gain more Microsoft Dynamics CRM consulting expertise in Europe. Plus, Avanada has named two key executive appointments.
Glowpoint, inc., which providers managed video services in the cloud, has added Notify Remote Monitoring and Express Remote Monitoring & Support to its OpenVideo cloud suite. Here’s a breakdown of the two added solutions.
Both N-able Technologies and Zenith RMM have embraced private equity funding in the past week or so. At first glance, the deals are similar: Two private equity firms are pumping money into managed services software companies. Plus, N-able and Zenith RMM compete with one another. But take a closer look and I think you’ll see the private equity approaches are quite different.
Accel-KKR, a private equity firm, has made a minority investment in N-able Technologies, the managed services software provider. The news comes one week after Zenith Infotech spun off Zenith RMM in a private equity deal. The big questions: How will N-able Technologies leverage the cash infusion? And is the RMM (remote monitoring and management) software market set to accelerate or consolidation?
All Covered, the national managed services provider, has acquired Vertical IT Solutions, a managed IT outsourcing company in Tampa, Fla. The deal continues All Covered’s M&A strategy and expands the company’s reach within Florida.
When Zenith Infotech spun-off its managed services software business earlier today, MSPmentor started to pursue timely questions about the spin-off company, known as Zenith RMM LLC. Now, Zenith Infotech CEO Akash Saraf, Zenith RMM CEO Michael George (pictured) and Summit Partners Principal Jason Glass offer some answers and insights for managed services providers. I’ve boiled down our conversation to five key points. Here they are.
The managed services and cloud services land grab continues. To wit, ClearCube Technology has acquired Network Elites, a managed services and cloud services specialist. Together, the Texas-based companies plan to accelerate their public and private cloud strategies — including a virtual desktop infrastructure (VDI) initiative. We’ll be watching to see how the ClearCube-Network Elites deal influences managed services and cloud services across Texas, where well-known players like White Glove Technologies and HEIT (now owned by CSI), among others, also have substantial footprints.
Take a look at our MSPmentor FAQ to find answers to your managed services questions. Plus, submit your questions and we'll build out the FAQ even faster. Start here.
