Mergers and Acquisitions, CSPs, Mergers and Acquisitions, IT distribution, MSP

MSP Acquisition: IT Solutions Consulting Buys SecurElement

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IT Solutions Consulting Inc. of Fort Washington, Pennsylvania has acquired SecurElement Infrastructure Solutions, a managed IT services provider (MSP) of Malvern, Pennsylvania. Financial terms were not disclosed.

The two companies offer complementary managed and cloud services across Microsoft Office 365, SharePoint and Teams, the firm said in a prepared statement.

LinkedIn: Garrett Graney. president, IT Solutions Consulting
LinkedIn: Garrett Graney, president, IT Solutions Consulting

Founded in 1994, IT Solutions is an employee-owned business and one of the largest MSPs based in the region. This is the company’s fourth and largest acquisition, and its first since becoming a 100 percent employee-owned business in 2012, IT Solutions says.

IT Solutions President Garrett Graney commented on the deal:

“We see incredible opportunities combining our operations. SecurElement’s team of talented engineers will help further our efforts to deliver unique value to our combined client base. IT Solutions’ scale will enable this team to further grow, expand our offerings and create additional value for our clients.”

IT Solutions is taking on SecurElement’s assets, including customer contracts, and has made an investment in updating the ITS headquarters in Fort Washington, Pennsylvania, to accommodate the expansion.

IT Solutions says it will leverage SecurElement’s expertise in security and cloud hosting as it continues its expansion plans around the Greater Philadelphia and Mid-Atlantic regions.

MSP Mergers and Acquisitions: Company Valuations

M&A activity involving MSPs and IT solutions providers remains strong, though company valuations can be difficult to pin down.

In some rare instances, we’ve seen some MSP valuations reach 8X to 10X annual EBITDA. The more reasonable valuation ChannelE2E has heard is 6.5X annual EBITDA — with many deals ranging from 4X (yes, that low) to 8X annual EBITDA, based on a range of factors. Here are deeper details about MSP valuations and associated factors.