Apparently, Zenith RMM’s spin-out from Zenith Infotech may be the start of a bigger managed services M&A trend. Consider this: Within the heart of the managed services market, a venture capitalist/private equity firm is expected to make a major investment — in a well-known MSP-oriented company — in the next two weeks or so, according to a trusted MSPmentor source. The source says the private equity investment will likely be more significant than today’s Summit Partners investment in Zenith RMM, which spun out of Zenith Infotech today.
Private Equity Firm Preps Major Managed Services Investment
The Economy vs. MSPs: Is There A Disconnect?
Picture this: At the recent TruMethods Schnizzfest conference, managed services providers like masterIT said annual revenues were growing roughly 30 percent. And at the recent Ingram Micro Cloud Summit, scores of MSPs expressed optimism about their growth prospects. Meanwhile, U.S. financial markets have declined for six consecutive weeks. And there are growing fears on Wall Street that the U.S. economy is heading for a double-dip recession. What’s an MSP to do? Here are some clues.
MSPmentor 100: All Covered Grows to Cover Even More
The fourth-annual MSPmentor 100 survey closes today, so we’re busy checking in with last year’s MSPmentor 100 companies to see how they’re performing. Today we look at All Covered, where growth — organic and inorganic — is an important element of the company’s success. Here’s the update.
Cloud Report: 12-15% Of Channel Companies Will Wash Out
A new report by Forrester Research projects that over the next five years, between 12 percent to 15 percent of all companies that operate within the IT channel will wash out of the market completely. How can you avoid that fate? Easy: get into cloud services now, and build a solid offering. Here’s a high-level overview.
Perot Systems Makes Managed Services Acquisition
Perot Systems Corp. has acquired Tellurian Networks, Inc., a managed service provider that hosts electronic medical records for physician groups. Financial terms were not disclosed.
Is It Time for MSPs to Sell Out?
Managed service providers have flooded me with email in recent days. Dozens of MSPs wanted more information about Sparxent, a start-up company in Salt Lake City, Utah, that’s acquiring MSPs and solutions providers across the globe.
Sparxent Start-up Begins Managed Service Provider and VAR Acquisitions
Sparxent, a start-up company based in Salt Lake City, Utah, is seeking to acquire managed service providers and VARs that generate roughly $5 million to $20 million in annual revenues.
Start-up Company Plans to Acquire Managed Service Providers and VARs
This just in from MSPmentor’s sister site, The VAR Guy: A start-up company, currently working in stealth mode, intends to acquire multiple VARs, integrators and managed service providers. Total combined revenues for the acquired companies will be about $100 million to $120 million.
Three More MSPs Acquired; Private Equity Investors Move In
Managed service providers remain in a buying mood, and continue to gobble each other up. And now, private equity investors are joining the action. The latest three examples: Key Methods purchased Enterprise Systems Inc.; Evolve IP acquired Lyrio IP Technology Solutions; and Wachovia Capital Partners has snapped up HostMySite in a private equity deal.
10 Managed Service Providers Acquired in 2008
The pace of mergers and acquisitions in the managed services market seems to be accelerating. Our MSPmentor M&A Tracker now lists 10 such deals this year — and we suspect there are dozens more that we’ve yet to hear about.
ePlus Buys Network Architects In Managed Services Deal
Call it a technology paradox: Even as the managed services market grows rapidly, it also consolidates through mergers and acquisitions. The latest such deal involves two Cisco Systems partners — ePlus and Network Architects — getting together to better target commercial customers.
mindSHIFT Acquires Software as a Service Specialist
mindSHIFT, a managed service provider, is pushing deeper into the software-as-a-service (SaaS) market. The company has acquired Collaboration Online, which specializes in hosted Microsoft applications.