Synoptek Acquires Midmarket Microsoft Dynamics Partner Indusa
Synoptek has acquired Indusa, uniting a Top 100 Vertical Market MSP (managed services provider) with a major Microsoft partner that serves midmarket customers, the companies have confirmed. The combined businesses serve more than 1,000 customers globally. Financial terms were not disclosed.
Indusa generated $7.9 million in revenue in 2016 — up 154 percent over a three-year period, according to an Inc. 5000 honor in 2017. We don’t know revenue figures for 2017. More recently, the company was named a Top 100 VAR for 2018 based on the company’s Enterprise Resource Planning (ERP) and accounting software expertise. Indusa has completed more than 1,500 projects for more than 500 customers in 14 countries, according to the company’s website.
Major Microsoft Expertise
Indusa’s consulting and maintenance services focus on Microsoft Dynamics 365, cloud, business intelligence (BI), predictive analytics, SharePoint, enterprise mobility, Office 365 and custom application development.
In a prepared statement, Synoptek CEO Tim Britt said:
“This acquisition means we have all of the delivery capabilities to plan, build, and manage complete integrated solutions in the cloud coupled with an emphasis on compliance and security. With our breadth and depth of expertise, we can deliver a complete digital transformation, helping organizations leverage an integrated technology platform that will simplify their IT, accelerate change more cost effectively and enable them to achieve business results faster.”
Instead of juggling multiple MSP relationships, customers can turn to Synoptek for all of their services — from design and build to infrastructure services, Britt adds.
We’re checking to see how Indusa will be organized under Synoptek’s ownership, and whether Indusa founder and CEO Kamlesh Shah will transition to the combined company.
Synoptek: Private Equity Funding, Acquisitions
Synoptek is backed by Sverica Capital Management, a private equity firm that acquired the IT service provider in October 2015. While much of the MSP buzz involves SMB customers, Synoptek has been focusing on end-to-end enterprise software solutions and associated services.
The MSP has been active on the M&A front. Key deals include the $29 million buyout of EarthLink’s IT services business in 2016. Moreover, the company has focused heavily on productizing its security and cloud services.
M&A: Microsoft Dynamics Partners
Meanwhile, M&A activity involving Microsoft Dynamics partners appears strong — though valuations are largely undisclosed. Recent deals include:
- June 2018: SHEA Solutions acquired TGO Consulting, a Microsoft Dynamics consulting partner in Markham, Ontario, Canada.
- April 2018: KPMG in Canada acquired Adoxio Business Solutions, a Microsoft Dynamics 365 integrator and gold-level partner.
- July 2017: DXC Technology acquired Tribridge, one of the largest independent integrators of Microsoft.
- April 2017: Unit4 acquired Assistance Software.
- January 2017: Columbus Global Acquired Tridea.
- Sample 2016 and 2015 deals included: Columbus Global Acquired Cambridge Online Systems; RSM US acquired Junction Solutions; HCL Technologies acquired PowerObjects and Sonata Software acquired IBIS Inc.
Similar M&A activity has occurred in rival ERP and CRM ecosystems — including the Oracle, Salesforce and SAP ecosystems.