MSP Acquisition: Immedion Buys Appica
Mergers and acquisitions across the MSP and data center markets continue to accelerate. The latest example: Immedion has acquired Appica, a VMware and NetApp hosting and cloud partner. The deal expends Immedion’s data center footprint from North and South Carolina to Cincinnati, Ohio.
Immedion LLC, launched in 2007, is based in South Carolina. It offers cloud, colocation and managed IT services. Immedion seeks to offer “enterprise-class” data center and managed IT services to smaller markets. The company had five data centers before the deal.
Appica, based in Ohio, offers cloud and data center services across the Midwest U.S., and also has international customers. The company, launched in 2002, has two data center facilities and 400+ customers.
HIPAA and SSAE 16 Compliance
In additional to geographic reach, it sounds like technical compliance expertise may have attracted Immedion to Appica. Indeed, Appica is SSAE 16 audited and offers carrier-neutral network capabilities, full power redundancy and compliance-ready solutions designed to help clients meet HIPAA and other regulatory requirements, the company claims. The company’s branded business continuity service, called AppBlock, is based on VMware.
Appica potentially is a Master CSP of sorts, allowing resellers to offer the company’s cloud computing, storage, and colocation services to end-csustomers.
Also of note for MSPs that are mulling near- or long-term M&A: Both companies leveraged financial and legal advisors to hammer out the deal. Indeed, DH Capital served as the financial advisor to Appica, and Greenberg Traurig LLP served as Appica’s legal advisor.
Financial terms of the deal were not disclosed. ChannelE2E has reached out to both companies for additional details on the deal, which was announced this week to customers.
Mergers, Acquisitions, VARs, MSPs
Multiple VARs, MSPs and cloud services providers have been acquired in recent weeks, perhaps in order to make sure all financial loose ends are tied up before the fiscal year 2015 ends.
The recent deals have included:
- Internet & Telephone acquired Jenaly on Dec. 1 as part of a voice and data push across New England.
- Presidio earlier this week acquired Sequoia Worldwide for hybrid cloud expertise.
- Multiple Microsoft Dynamics VARs and IT consulting firms have been acquired in 2015.
- Private equity firms have been buying up IT service providers and VARs.
- And emerging cloud service providers have acquired MSPs for regional and technical reach.
ChannelE2E will update this article when Immedion and Appica executives are available for comment.