Mergers and Acquisitions

Infinity Group Acquires Pax8’s End Customer Business

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UK-based Infinity Group has acquired Pax8’s end customer business as the Microsoft Partner looks to expand into the US and Europe.

While financial terms of the deal were not disclosed, the acquisition brings 200 new Microsoft Dynamics 365 Business Central users to Infinity's existing clientele of 340. It also positions Infinity Group as one of the largest independently owned Business Central partners in the UK, according to the company.

This is technology M&A deal number 126 that ChannelE2E and MSSP Alert have covered so far in 2024. See more than 2,000 technology M&A deals for 2024, 2023, 2022, 2021, and 2020 listed here.

Infinity Group, founded in 2001, is based in Tunbridge Wells, Kent, United Kingdom. The company has 155 employees listed on LinkedIn. Infinity’s areas of expertise include IT support, IT consultancy, Microsoft products, digital transformation, IT infrastructure, IT security, GDPR consultancy, Microsoft Cloud, Microsoft Dynamics 365, and field services.

Pax8, founded in 2012, is based in Greenwood Village, Colorado. The company has 1,705 employees listed on LinkedIn. Pax8’s areas of expertise include cloud, productivity, infrastructure, continuity, security, network, communications, technology, cloud marketplace, Microsoft, AWS, managed service providers, SentinelOne, CrowdStrike, and MSP.

Infinity Partners With Pax8

Infinity Group continues to invest in the Dynamics 365 and Business Applications space. The acquisition of Pax8's end-customer business, formally part of BamBoom Cloud, helps facilitate that investment while setting the foundation for an ongoing partnership with Pax8. 

“We are delighted to enter into this strategic partnership with Pax8 and acquire BamBoom Cloud’s customers to grow our Business Central business,” Rob Young, CEO, Infinity Group, explained. “It’s a key step in our growth, allowing us to deliver fixed price, fixed outcome solutions across Dynamics 365 and Business Central at scale.”

“This partnership will open up new doors for these end-customers, whilst ensuring commitment to our 100% indirect business model,” said Brett Critchley​​​​, VP of Business Applications at Pax8.

Meanwhile, Infinity Group is making its first forays into the EU and US markets. Infinity has opened new locations in Europe and America, allowing it to do business across the UK, EU, and US, while providing Microsoft solutions to support more business, according to the company.

Pax8 in Transition: Workforce Reductions, Leadership Changes, and Growth Amid Industry Turbulence

The deal coincides with a period of turbulence for Pax8. 

In April, the company announced the layoff of 5% of its employees in what it referred to as a workforce reduction. A leaked email allegedly sent to Pax8 employees at the time cited various economic factors leading to the decision, including industry contraction and slowed spending, higher interest rates and inflationary pressures, and leadership missteps.

A month after the layoff announcement, Pax8 saw a leadership shakeup with its CTO Scott Chasin stepping into the chief executive position and replacing founder John Street.

This tumult followed a period of rapid growth for the company. Pax8 hit a $1 billion ARR (annual recurring revenue) run rate in November 2022. In April 2022, ChannelE2E reported that Pax8 raised $185 million and a valuation of $1.7 billion. That was added to the $96 million the company raised in January 2021.

That financial growth was fueled in part by M&A, with the company making several key acquisitions between 2021 and 2022 including: