Managed and professional IT services provider Netrix LLC, backed by private equity firm OceanSound Partners, has acquired the managed IT services business unit of Contegix. Financial terms of the deal were not disclosed.
This is technology M&A deal number 415 that ChannelE2E has covered so far in 2021. See all technology M&A deals for 2021 and 2020 listed here.
The deal expands Netrix’s market presence in the Northeast and mid-Atlantic regions while adding to its ITSM service desk and cloud managed services capabilities, the company said. Employees of Contegix’s managed IT services division will join the Netrix team, according to the company.
MSP Acquisition: Expected Synergies
Netrix says it plans to combine the ITSM service desk capabilities acquired from Contegix with its own portfolio of cloud, security, collaboration, data and application development solutions. The move fits into Netrix’s overall growth strategy, a strategy it plans to continue growing by investing in sales, marketing, technical talent and advanced product offerings.
Headquartered in Chicago, Illinois, Netrix is a Gold-level Microsoft partner. The company typically works with small and midsized enterprise customers and has additional locations in Milwaukee, Wisconsin and India.
Netrix has M&A experience. In December 2020, the company acquired the Microsoft Consulting and Managed Services business unit of Prosum Inc.
Netrix has been backed by tech-focused private equity firm OceanSound Partners since a recapitalization in August 2020.
Executive Insight
In a prepared statement about the latest acquisition, Rob Dang, CEO of Netrix, said:
“I’m very excited to welcome our new team members and customers to the Netrix family. Together, we have combined two best-in-class solution providers with complementary service offerings, technology expertise, and geographic footprints. This acquisition greatly expands Netrix’s managed services offerings and cloud capabilities and enhances our market position as the go-to provider for small and midsize enterprise customers in need of sophisticated IT solutions.”
Don Penland, VP of corporate development at Netrix, added:
“The acquisition of the Managed IT Services business unit from Contegix allows us to better support customers coast-to-coast while adding additional scale and sophistication to our managed and cloud services offerings. We look forward to continuing to pursue an acquisition-driven growth strategy that complements our platform’s organic growth potential. Additionally, we are excited to further strengthen our strategic partnership with Microsoft by supporting their solutions within this new region, with a core focus on Microsoft 365 and Microsoft Azure.”
Brad Hokamp, CEO of Contegix, concluded:
“Netrix is an excellent strategic fit for our Managed IT Services business unit, bringing an even broader set of advanced capabilities to our customers. Contegix will now be able to focus primarily on growing our Application Platform Services business, including Atlassian solutions, Content Management Systems (CMS) and DevSecOps. We wish our long-time colleagues and customers the best as they embark on this next step of their journey with Netrix.”
Bank Street Group LLC served as exclusive financial advisor to Contegix in connection with this transaction. Wilson Sonsini Goodrich & Rosati PC served as legal counsel to Contegix. Skadden, Arps, Slate, Meagher & Flom LLP served as legal counsel to Netrix.
