Hosting Provider Buys Canadian Midmarket MSP
CentriLogic has acquired Advanced Knowledge Networks (AKN), the companies confirmed today. The deal essentially blends managed hosting, cloud, co-location, WAN services and managed IT services into a “one-stop shop for all IT outsourcing requirements,” the two companies said. The business combo is the latest in a flurry of M&A transactions across the IT channel.
CentriLogic has 10 interconnected data centers throughout North America, Europe, and Asia, and recently achieved five-year revenue growth of 1,005%, the company claims. Of course that’s an impressive growth rate, but ChannelE2E is seeking three points of clarification: We don’t know the company’s actual revenue figures, we don’t know if the growth was mostly organic, and we don’t know if the company is profitable. But we’ll be sure to ask those questions and others during an interview with CentriLogic CEO Robert Offley soon.
Updated Nov, 20, 3:00 p.m. ER: See CentriLogic CEO Interview Here.
The Midmarket MSP
AKN, meanwhile, offers managed IT solutions to mid-market and large enterprises in Canada. The company has “achieved profitable and consistent year-over-year revenue growth and has extended its footprint Canada-wide with locations in Vancouver, Calgary, Toronto, and Halifax,” the two companies indicated.
How did the two companies find each other for a potential M&A deal? Here’s a clue: AKN has leveraged CentriLogic’s data center facilities for several years, and the two companies have partnered on customer deployments since around 2012, according to Monica Rok, president of AKN.
MSPs, VARs, Mergers and Acquisitions
Merger and acquisition deals have been especially active across the IT channel in recent weeks. The overall race is on to gain economies of scale, more technical know-how, and key regional footprints. And the deals haven’t been limited to MSPs.
Among the examples to note:
- Microsoft Dynamics VARs: At least three M&A deals have occurred in the past six weeks.
- MSP-oriented Software: SolarWinds N-able was acquired in a $1.4 billion private equity deal and Barracuda Networks acquired Intronis… plus, Kaseya is preparing for acquisitions that may occur within days. There are also rumors that Tigerpaw Software is listening to potential buyout bids.
- Private Equity for VARs, MSPs: Recent private equity deals for VARs and MSPs have involved AHEAD, Synoptek and Pomeroy.
ChannelE2E will update this coverage after completing a scheduled interview with CentriLogic CEO Robert Offley.