Private equity, Mergers and Acquisitions, Midmarket, Mergers and Acquisitions, MSP, Content

MSP M&A: Synoptek Gains New Private Equity Owner

Credit: Synoptek

Synoptek -- a global IT systems integrator, consulting firm and MSP -- has a new private equity owner. Indeed, Quad-C Management has acquired and recapitalized Synoptek. The seller, private equity firm Sverica Capital Management, retains a minority stake in the MSP. Financial terms and valuation metrics were not disclosed.

This is technology M&A deal number 847 that ChannelE2E has covered so far in 2022. See more than 2,000 technology M&A deals involving MSPs, MSSPs & IT service providers listed here.

Synoptek and Quad-C Business Backgrounds

Synoptek, founded in 2001, had been backed mainly by Sverica since 2015. The global MSP, based in Irvine, California, has roughly 1,000 employees and 12 offices worldwide.

Synoptek is a Microsoft Partner of the Year for 2022. Key areas of expertise include Microsoft Dynamics, Azure, Microsoft 365, ServiceNow, Salesforce, AWS, and Google G-Suite.

Synoptek has growth organically and through M&A. Noteworthy acquisitions include:

Quad-C, founded in 1989, is based in Charlottesville, Virginia. The mid-market private equity firm invests in such sectors as consumer services, healthcare, industrial, specialty distribution, food & beverage and consumer products, and transportation/logistics companies. In its three-decade history, Quad-C has invested more than $4 billion of capital in 80 platform companies, the firm indicated.

Private Equity Recapitalizes Synoptek: Executive Perspectives

In a prepared statement about the recapitalization, Synoptek CEO Tim Britt said:

“As customers move to cloud platforms, Synoptek has grown its capabilities to deliver more value and Quad-C’s investment will be instrumental in our continued organizational expansion. This investment will enable us to grow and extend our service offerings for clients as well as create new and strategic career opportunities for our team. The partnership is a strong fit for us both.

We are excited for the future of what this partnership with Quad-C holds and know that it will be a driving force in helping us advance the digital transformation needs of every customer we serve."

Added Jack Walker, partner at Quad-C:

“We are honored to partner with Tim Britt and his team at Synoptek who have done a remarkable job scaling the business over the past few years. This platform is ideally positioned to capitalize on the continued digital transformation of the economy, and we look forward to working closely with the team to drive outsized growth for the company and deliver even better outcomes for their clients.”

Canaccord Genuity Group Inc. served as financial advisor to both Synoptek and Sverica.

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.