Canadian MSP F12.net Inc (F12) has acquired Xylotek Solutions, an IT services provider to small and medium-sized enterprises (SMEs) in southwestern Ontario. Terms of the transaction were not disclosed.
This is technology M&A deal number 262 that ChannelE2E has covered so far in 2021. See all technology M&A deals for 2021 and 2020 listed here.
The addition of Xylotek bolsters F12’s geographic reach, as well as expands its leadership capabilities and bench strength, according to the company.
Founded in 2005, Xylotek is headquartered in Kitchener, Ontario. In 2015, the company’s founders stepped down leading to shareholders Chris Pickard and Bonnie Chan becoming 50/50 equity partners in the company. That same year, the company began accepting Canada-wide service contracts so that now Xylotek supports over 12,000 users across North America, the company says.
F12 Acquires Xylotek Solutions: “Remarkable Client Affinity”
Alex Webb, CEO of F12.net, commented:
“It is a true testament of the leadership team, Chris, and Bonnie, on everything Xylotek has been able to accomplish in such a short period. Their passion for customer service and for providing high-quality solutions speaks to their remarkable client affinity. It is rare to find two individuals with the kindness and work ethic these two possess. Combining Chris and Bonnie’s industry knowledge with F12’s capabilities provides a unique option for customers in this region of Ontario. This expansion is exciting for us, and I believe we are gaining leaders of the highest quality.”
Bonnie Chan, vice president of Xylotek, also commented:
“We are thrilled to join the F12 team. The alignment between F12 and Xylotek’s passion for best-in-class service and technology solutions grows more evident with every conversation. Through this partnership, we are excited to accelerate our growth and expand the service offerings we can bring not only to our existing customers but also to new prospects.”
Chris Pickard, president of Xylotek, added:
“You’re nothing without your clients and your team. Some clients have been with me since I was 22 years old; they are like family. As a small business, we are always running on what resources, finances, and time we can bring. This can be frustrating for our team of very bright technical minds eager to offer creative and effective technological solutions to our clients. I’m excited that this opportunity with F12 will allow our team to become subject matter experts and provide the greatest level of support to customers.”
Headquartered in Edmonton, Alberta, F12 has roughly 200 employees operating out of nine offices across Canada. The company offers bundled managed services for IT infrastructure, cloud, cybersecurity, software licensing, and more. The MSP also offers F12 Connect, a proprietary software tool focused on customer experience (CX) outcomes.
F12.net has extensive merger and acquisition (M&A experience) across the Canadian IT services sector. Noteworthy F12.net acquisitions include:
In November 2020, F12 received a CAD$36 million (roughly US$27.33 million) investment from private equity firm Clairvest.