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MSP Acquisition: InCare Technologies Buys PC Doctor

InCare Technologies, a Birmingham, Alabama-based IT managed services provider (MSP), is stepping across the Memphis border to acquire PC Doctor. Financial terms of the deal were not disclosed.

The acquired business will continue operating with its current team, assets, and customer contracts under the InCare brand, the buyer said.

Founded in 1997, PC Doctor has operated as a pure play MSP for small and medium sized businesses across the Mid-South region. The company’s founder and CEO Jon Parks will continue with the company, becoming an InCare shareholder as part of the M&A deal.

Parks commented on the deal:

“I’m thrilled about the new partnership with InCare. I’m proud of what my team has done over the past two decades, and I’m excited to see how we can serve our customers even better with the backing of a larger team and new services we can provide.”

Brian Walker

InCare Technologies itself is a nationally recognized IT managed service provider. It was included on CRN’s Tech Elite 250 and Solution Provider 500 lists. The company came into existence in 2012, breaking off from InLine, its 20-year-old-plus parent company.

Brian Walker, CEO of InCare also commented on the acquisition:

“Making IT safer and more efficient for our customers is our primary goal. The team at PC Doctor share our core philosophy of client-centered service. We now have over 50 techs of all stripes of IT specialties. We’re ready to take our business to the next evolution.”

MSP Valuation, Mergers and Acquisitions

Most MSPs — which tend to have heavy recurring revenue — are selling for about 4X to 8X annual EBITDA. The multiples tend to be 4X to 6X for all cash up-front deals. The higher valuation deals tend to involve pure recurring revenue, healthy EBITDA profit margins (15 percent plus) and performance-based earn outs over a year or two, according to ChannelE2E conversations with M&A participants.

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