In the software market, vendors have spent 2009 buying up one another at somewhat deflated valuations. But in the managed services market, I sense that the pace of MSP mergers and acquisitions deals has slowed a bit in 2009 compared to 2008. My key thought: Are there too many sellers and too few buyers?
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MSP Mergers and Acquisitions: Slowing Market?
Posted September 3rd, 2009 by Joe Panettieri
MSPs Continue Mergers, Acquisitions
Posted July 13th, 2009 by John Moore
MSPmentor’s M&A Tracker has spotted two managed services-related acquisitions in recent days. The first involves Safe Systems Inc. (an MSPmentor 100 company) and the second involves Deluxe Corp.’s Hostopia unit. Here’s a closer look at each deal.
Most Read Managed Services Stories, First Half 2009
Posted July 3rd, 2009 by Joe Panettieri
Now that we’ve reached the mid-point of 2009, let’s take a moment to review the 10 MSPmentor blog entries you read most during the first half of 2009.
Small Business M&A Activity Slows
Posted April 29th, 2009 by Joe Panettieri
I keep hearing from managed service providers who are scouring the market for potential acquisitions. But that MSP trend appears to be the exception to the rule. The number of small businesses that were purchased/sold in Q1 fell by 36 percent compared to Q1 2008, and small business valuations are falling. Can MSPs really buck those macroeconomic trends?
Two MSPs Merge to Form National Exchange Server Giant
Posted March 17th, 2009 by Joe Panettieri
Despite the horrendous economy, regional managed service providers are merging to form national MSPs that blanket the United States. The latest example: Azaleos and M3 Technology Group have merged to create a coast-to-coast managed service provider whose clients include Chiquita, Alcon and Wendy’s/Arby’s. Azaleos now claims to have “the highest concentration of Exchange and Unified Communications expertise outside of Microsoft.” Here are details and observations.
Kear IT Acquires Managed Services Provider
Posted February 13th, 2009 by Joe Panettieri
Kear IT Inc., a solutions provider in Baltimore, Md., has acquired a managed services provider in Hanover, Pa. The company also named a VP of managed services. The deal is the latest to land on the MSPmentor M&A Tracker, which highlights MSP-oriented mergers and acquisitions across the globe. Here’s a closer look at Kear IT’s MSP move.
Two Managed Service Providers Merge
Posted January 29th, 2009 by Joe Panettieri
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.
Perot Systems Makes Managed Services Acquisition
Posted November 14th, 2008 by Joe Panettieri
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.
Managed Services Acquisition: ILS Technology Buys ComBrio
Posted November 6th, 2008 by Joe Panettieri
What happens when you take a hot technology industry (like managed services) and combine it with a cold economy? The answer: A whirlwind of mergers and acquisitions. The latest example involves ILS Technology acquiring “substantially all of the operating assets” of ComBrio Inc., a managed services software provider. Here are the details.
North Carolina Managed Service Providers Merge
Posted November 4th, 2008 by Joe Panettieri
Consolidation continues in the managed services market. The latest example: Alpheon Corp., a managed service provider in Raleigh, North Carolina, has acquired neighboring Network Management Partners Inc. (NMP).
Managed Services Acquisition: Datacore Buys Little Village IT Consulting
Posted October 21st, 2008 by Joe Panettieri
Datacore Consulting, a managed service provider in Cleveland, Ohio, has acquired Little Village IT Consulting of Stow, Ohio. Terms of the deal were not disclosed. The acquisition allows Datacore to extend its footprint within the state of Ohio.
How to Track SaaS and Managed Services Funding
Posted July 18th, 2008 by Joe Panettieri
As the hype about software as a service (SaaS) and managed services continues, it’s sometimes difficult to keep track of all the startups and young companies that receive venture funding. But I just stumbled across a Web site that may help you track how investors are pumping money into SaaS and MSP start-ups.
DataPipe: Goldman Sachs Pumps $75 million Into MSP
Posted July 10th, 2008 by Joe Panettieri
DataPipe, a managed service provider in Jersey City, N.J., has received $75 million in credit and equity financing from Goldman Sachs. The company plans to use the money to expand its data facilities and enhance service offerings.
MSP Acquisition: OneNeck IT Services Buys Hosting Center
Posted July 7th, 2008 by Joe Panettieri
June was a busy month for managed service provider (MSP) acquisitions. And now, July is off to a fast start — with OneNeck IT Services Corp. acquiring Ensynch Inc.’s outsourced managed hosting business.
MSP Acquisition: Network Billing Systems Buys Simlab.net
Posted June 12th, 2008 by Joe Panettieri
June is turning into “merger and acquisition month” for managed service providers. The latest deal involves telecommunications service provider Network Billing Systems (NBS) acquiring Simlab.net, an MSP.
Private Equity MSP Deal: GTCR Golder Rauner Invests in IQNavigator
Posted June 10th, 2008 by Joe Panettieri
GTCR Golder Rauner, a private equity firm, says it is investing in IQNavigator, which specializes in vendor-neutral managed service programs.
Three More MSPs Acquired; Private Equity Investors Move In
Posted June 6th, 2008 by Joe Panettieri
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
Posted May 15th, 2008 by MSPMentor
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
Posted May 13th, 2008 by Joe Panettieri
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.
How Much Is Your Company Worth?
Posted April 16th, 2008 by Joe Panettieri
As managed service providers continue to acquire one another, readers have been asking me about MSP valuations. Are buyout prices based on specific financial multiples? Are MSPs valued based on a multiple of revenue, gross profits, net income, something else?
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