MSP M&A: NetGain Acquires EasyIT for Ohio IT Services Expansion

Credit: NetGain

NetGain Technologies, backed by Evergreen Services Group, has acquired EasyIT, a managed IT services provider (MSP) in Columbus, Ohio. Financial terms of the deal were not disclosed.

This is technology M&A deal number 626 that ChannelE2E has covered so far in 2022. See more than 1,000 technology M&A deals involving MSPs, MSSPs & IT service providers listed here.

EasyIT was founded in 1998 by brothers Eric and Kurt Hoeft. CFO Marla Hoeft has also been instrumental in the MSP’s growth, the seller indicated. The company has 32 employees listed on LinkedIn. Key areas of vertical market expertise include Architecture, Engineering, Healthcare, Not-for-Profit, Financial and Retail, the seller indicated. EasyIT also is a SOC 2, Type II certified IT provider.

NetGain, founded in 1984, is based in Lexington, Kentucky. The company has 184 employees listed on LinkedIn. Evergreen acquired NetGain in December 2018.

NetGain Acquires EasyIT: Executive Perspectives

Kurt Hoeft, CEO, EasyIT

Tim Burke, CEO, NetGain Technologies

In a prepared statement about the EasyIT deal, NetGain CEO Tim Burke said:

“Eric, Kurt, and Marla have been a joy to work with. They have built a very strong, growing managed IT services business with a wonderful culture and loyal customer base. Their people-first approach, exemplified through their EasyIT & Me program, is impressive and aligns to our core values. We’re excited to welcome the EasyIT team to the NetGain family and look forward to supporting their continued growth through collaboration across all of our branch offices.”

Added Kurt Hoeft, CEO of EasyIT:

“We became aware of NetGain over two years ago when some industry peers merged their MSPs into the NetGain portfolio. Their experience was outstanding and that caught our attention. After almost 25 years, the timing seemed right, and we believe being a part of larger organization will help us attain our aspirational service goals much quicker than we could on our own. It also will open opportunities for our staff. Eric and I look forward to evolving EasyIT to the next level with the help of our talented partners at NetGain.”

NetGain’s MSP Acquisition Strategy

NetGain has been an active buyer in the MSP market, acquiring five IT service providers over the past 12 months. Example deals include Cyber Solutions of Anderson, South Carolina; 4EOS of Fort Wayne, Indiana; and TruTechnology of Florida, ChannelE2E has previously reported.

Noted Burke about NetGain’s strategy:

“Our acquisition strategy is unique.We follow a people-first, decentralized approach; meaning the company retains their current staff, branding, culture, and service delivery model in place long term, keeping employees and customers happy and expanding their network to benefit from collaboration across the broader NetGain team. This is a major benefit to MSP owners who are looking to sell their business.”

Evergreen Services Group’s MSP Investment Strategy

NetGain’s parent — Evergreen Services Group — has made more than 50 MSP acquisitions and investments since 2018. Evergreen’s strategy has organized various MSP investments into regional business groups. They include:

  • Executech in the Western United States and Canada;
  • Lyra Technology Group in the Northeast and Midwest United States and Eastern Canada; and
  • NetGain in the Midwestern and Southeastern United States.

Instead of “flipping” the acquired businesses to turn a quick profit, Evergreen Services Group invests, holds and builds value for the long term. Evergreen now owns multiple “platform” MSPs — which are regional (or national) IT service providers that are large enough to absorb tuck-in MSP, MSSP and IT consulting acquisitions.

Evergreen Services Group continues to educate the MSP market about M&A activity. The company’s MSP Valuations website, for instance, allows MSPs to measure their potential company valuation based on such variables as revenue, growth rate, EBITDA, capital expenditures, customer retention and customer concentration.

Alpine Investors: Funding Evergreen’s MSP Investments and Acquisitions

It’s a safe bet Evergreen Services Group will make more MSP investments and acquisitions.

Why? Because Evergreen is backed by private Equity firm Alpine Investors — which raised raised $2.25 billion in 2021. A portion of that money has been earmarked for more MSP investments and acquisitions, ChannelE2E confirmed.

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