Private Equity Backs Another MSP, MSSP Merger
Private equity firm M/C Partners — active and well-known in the managed IT services provider (MSP) market — is backing another M&A deal. This time the marriage involves an MSP-MSSP merger between Ascend Technologies and Infogressive, MSSP Alert reports.
This is M&A deal 293 that ChannelE2E has covered so far in 2020. See the complete M&A deal list here.
M/C Partners: MSP Merger, Acquisition Activity
Poke around the MSP market, and you’ll see M/C Partners’ finger prints all over various M&A deals and investments.
Indeed, Ascend was formed through the 2019 combination of West Monroe Partners’ Managed Services Division and Gratia Inc. M/C Partners backed that deal.
Also of note: Thrive Networks, backed by M/C Partners since 2016, has emerged as a major New England MSP that has acquired at least six service providers while under private equity ownership. The lineup includes:
M/C Partners Backs Ascend, Infogressive Merger
Fast forward to present day. M/C Partners is backing the Ascend-Infogressive merger to form a combination MSP and MSSP that has nationwide reach, and roughly 150 employees spanning offices in Chicago and Nebraska.
In a prepared statement about the deal, Wayne Kiphart, CEO of Ascend, said:
“Ascend and Infogressive leadership saw an opportunity to create continued growth in our respective businesses while offering a broader range of services and capabilities to our respective clients. The merger will significantly bolster Ascend’s established strengths in cloud and infrastructure, application management, data management and cybersecurity. We are excited to welcome the entire Infogressive team to our Ascend family.”
Added Justin Kallhoff, CEO, Infogressive:
“We are proud of our heritage and have been 100% focused on cybersecurity since our founding in 2006. In that time, we have never had a data breach. For Infogressive, the merger means we can invest in growing our areas of competency in cybersecurity while ensuring our existing clients and partners gain from Ascend’s extensive breadth of offerings and broader geographic presence. As I worked with Ascend leadership, it was clear that our company cultures would blend seamlessly while offering our clients and partners a broader range of services and solutions and give our employees many opportunities to develop and grow their knowledge and careers.”
The deal was facilitated by IT ExchangeNet (ITX), a mid-market M&A firm specializing in the sale of MSSPs, MSPs, and Microsoft channel partners.
M/C Partners: More MSP Investments Coming?
It’s a safe bet M/C Partners will remain active in the MSP sector. The Boston-based private equity firm focuses exclusively on the communications, information technology services and media sectors. The firm has invested over $2.2 billion of capital into over 130 companies, generally investing in companies with enterprise values of $25 million to $250 million.