Presidio Buys $300 Million Cisco Partner Netech
Presidio has acquired Netech, an IT services provider with revenues in excess of $300 million. Netech works closely with Cisco Systems, NetApp, EMC and VMware (among others) — a key partner list that aligns with Presidio’s background. The deal is expected to be announced today.
Presidio, which is private equity owned, has been buying up IT service providers, cloud consulting firms and integrators to expand its national footprint and deepen its hybrid cloud expertise.
By acquiring Netech, Presidio gains 430 employees and nearly 200 engineers who hold more than 1,200 technical certifications. The deal also delivers a big footprint across the Midwestern United States. Netech is headquartered in Grand Rapids, Mich., and has 11 offices. The company was founded 19 years ago by James Engen and was family owned ahead of the sale, according to details from both companies.
The Netech acquisition will create Presidio’s sixth geographic Area, becoming Presidio North Central Area. Mark Wierenga (James Engen’s son in law) will be North Central Area President, reporting to CEO Bob Cagnazzi, according to details from both companies. The buyout is expected to be completed this quarter. Financial terms were not disclosed.
Presidio Hybrid Cloud Strategy
Through organic expansion and acquisitions, Presidio has become one of the nation’s largest providers of hybrid cloud services to midmarket customers.
Instead of competing head-on against public clouds, the company has completed a range of case studios to show customers the value of managed hybrid cloud services.
The agreement is Presidio’s second recent acquisition. The company in November 2015 acquired Sequoia Worldwide LLC‘s assets to push deeper into private and hybrid cloud solutions, along with cloud brokerage technologies.
I suspect Presidio now has about 3,200 employees but need to check that figure. Owned by Apollo Global Management, Presidio has introduced a range of cloud and managed services in the past few years. Presidio has also exited some businesses — such as the Atlantix Global Systems subsidiary, a reseller of reconfigured and refurbished IT and telecom equipment.
IT Channel Partner M&A
The New Year has delivered numerous mergers and acquisitions among VARs, managed services providers (MSPs), cloud consulting firms and integrators. Confirmed deals so far have included:
- Microsoft Partner M&A: Vital Network Solutions, and IT service provider in Yorkshire, England, has acquired rival Octari Ltd., a Leeds-based Microsoft Gold Certified Partner with Azure cloud platform expertise.
- New England IT Service Providers: CTComp acquired Salesforce.com application and cloud specialist CASE Partners.
- Big Consulting: Accenture acquired CRMWaypoint to expand its Cloud First Applications team in Norway. Accenture’s cloud consulting and integration strategy spans Salesforce, Workday, ServiceNow, Google and other pure play cloud technologies.
ChannelE2E will update this article if more details about the Netech buyout emerge.