MSP Acquisition: NexusTek Buys Zumasys Cloud Hosting Units
NexusTek provides IT services including help desk, cloud services, cybersecurity services, IT consulting, server monitoring, VoIP, and Microsoft Dynamics. The company says the tens-of-thousands of users who formerly relied on Zumasys Cloud will now use NexusTek to host their critical applications.
This is NexusTek’s fifth M&A deal in four years. In May of this year, the company merged with Breakthrough Technology Group (BTG). The merger was facilitated by Abry Partners, which has backed NexusTek since it made a sizable investment in NexusTek in December 2017. The firm bought BTG just prior to the merger.
Who Is Abry Partners?
Abry Partners should be a familiar name to those who frequent MSP circles. The private equity investment firm focuses its attention on media, communications, and business and information services sector. Since 1989, they have completed over $77 billion of leveraged transactions and other private equity, mezzanine, or preferred equity investments.
This acquisition will grow NexusTek’s presence in the Western United States and continue the company’s expansion plans. Indeed, NexusTek has grown 34 percent annually over the last three years and currently serves more than 2,000 organizations.
“Businesses need to embrace the almost unlimited potential for technology to serve as a strategic asset and not a cost center,” said Mike Jenner, CEO, NexusTek. “Zumasys’ success reflects their shared belief in this philosophy and unique understanding of what it takes to help customers align corporate goals with technology. We are confident this transaction is a significant step forward in our mission to the be the nation’s most complete service provider.”
The Buying And Selling Of Zumasys
Zumasys bills itself as one of the fastest-growing technology companies in the United States. Its cloud platform, which was launched way back in 2006, is used by business applications, accounting systems, and legacy ERP applications.
But earlier this year, Zumasys announced it had acquired certain assets from fellow Orange County-based MSP, TCS Network Consulting. That deal paved the way for the company to launch a new cloud-managed service offering. The shredding of its cloud hosting, infrastructure, and managed service business units could allow the company to concentrate its resources on its newest solution.