MSP Software Acquisitions: More M&A Deals On the Horizon
More potential buyers of MSP software and cloud companies could include:
Kaseya: Insight Venture Partners acquired Kaseya in June 2013. That deal opened the door for Kaseya to buy multiple businesses — including Scorpion (identity management), Zyrion (BSM) and Rover Apps (MDM). The past two years have involved a major reorganization, a new headquarters, another CEO change and lots of product engineering to integrate all the acquired technologies. Odds of Buying Something: Total guess — Reasonable to Low.
LogicNow: The former GFI Max business is humming along. A recent big data focus will give MSPs so-called LOGICcards — a new set of applications that blend machine learning and predictive analytics to pinpoint future SMB customer needs. If I had to guess, CEO Walter Scott has his eyes on data-driven opportunities — but I suspect he also wants to remain focused on a potential IPO over the long haul. Odds of Buying Something: Reasonable if it doesn’t distract LogicNow from existing growth plan.
SolarWinds N-able: The poster child for successful MSP-centric software acquisitions. The N-able buyout (hmmm… back in 2013?) has performed far better than most skeptics anticipated — mostly because SolarWinds CEO Kevin Thompson provided resources to N-able GM JP Jauvin without smothering N-able with SolarWinds objectives. More recently, SolarWinds has tucked a small, PSA-like solution into N-able. Odds of Buying Something: Reasonable for the N-able division, high for SolarWinds overall.
Sophos: Sophos has been a buyer in recent years — snapping up Astaro (unified threat management, 2011), Mojave Networks (cloud-based security, 2014) and Reflexion Networks (email security, 2015). I don’t know if Sophos is too busy digesting Reflexion to consider another buyout. The core area of focus: “Complete IT security to the mid-market.” Odds of Buying Something: Reasonable to high.
Other Potential Buyers: What other companies are scouring the market for potential MSP-centric software and cloud plays? I’m sure I missed a few. Feel free to email me (Joe@AfterNines.com) with the names I should be tracking.
Potential Targets: Purely hypothetical, based on how the MSP market has consolidated in recent years — and also based on which companies are still on the board. Potential targets, hypothetically speaking, could include StorageCraft, Tigerpaw Software, Vorex (though relatively new to MSPs) and Zetta.
Even More Targets: Of course, there are hundreds of additional targets worth tracking. Many of them are new ISVs (independent software vendors) that will surface at Amazon re: Invent 2015 and IT Nation 2015 in the weeks ahead. ChannelE2E will be tracking both events closely for you.