blueAlliance IT Seeks to Acquire MSPs, But This Isn’t Private Equity
blueAlliance IT is seeking to acquire small and midsize MSPs. The goal appears to keep each acquired MSP intact, while allowing each business to tap into shared services from blueAlliance IT.
The strategy seeks to acquire MSPs that generate at least $500,000 in annual revenue. Rather than rolling up all the acquired business into one brand, blueAlliance IT wants each acquired business to retain their local brand and expertise — while leveraging shared services from the parent company.
blueAlliance IT is currently privately funded, though ChannelE2E is checking to determine the source of the private funding. Over time, the organization “may explore outside investment to further build and enhance our network and growth platform,” according to a blueAlliance IT FAQ.
blueAlliance IT: Founding Partners & Shared Services
The blueAlliance IT venture includes such founding partners as:
- BECA (Atlanta, Georgia), which has 34 employees listed on LinkedIn;
- Path Forward IT (Ohio), which has more than 100 employees; and
- Skynet Innovations (Ohio and Michigan), a Top 100 Vertical Market MSP that has 51 employees listed on LinkedIn.
A total of eight partner companies are involved so far, and multiple companies are under consideration to join the effort, the organizers said. Moreover, the total enterprise employment of blueAlliance IT is approximately 600 people.
Path Forward IT founder Nick Recker provided the “impetus” that sparked blueAlliance IT’s launch. Mike Estep, president of founding partner BECA, is CEO of blueAlliance IT.
MSPs that join blueAlliance can leverage such shared services as:
- 24/7/365 access to a national rapid response team and specialized experts in cybersecurity and data management;
- HR, finance, recruitment; and
- sales, marketing, CIO consultation and strategic planning services.
blueAlliance IT: Executive Perspectives
In a prepared statement, Recker said:
“Every aspect of our lives is vastly different today versus even just 10 years ago thanks to technology, and businesses need to not only ‘keep up’ but capitalize on the innovations on the horizon. The blueAlliance IT growth platform provides partners with the specialized capabilities, enterprise-level support and capital needed to stay relevant and keep their clients at the forefront of the latest innovations and advancements in cybersecurity.”
“There are a lot of opportunities for independent IT companies to ‘cash out’ and become absorbed by a large, private equity-led network. That’s not us! blueAlliance IT is led by tech entrepreneurs and seeks to partner with independently managed companies and bolster their brands, client base and talent.”
blueAlliance IT COO Shaun Sexton brought founding partner Skynet Innovations on board to grow his team and his business. In a statement, Sexton said:
“blueAlliance IT is enabling the Skynet team and brand to scale faster. It eliminates many of the complexities of small business ownership and removes the barriers inhibiting growth.”
ChannelE2E expects to share more details about blueAlliance IT later this week.