MSP SageNet Acquires Digital Signage Service Provider Convergent
SageNet has acquired Convergent. The deal unites a network- and cybersecurity-focused MSP with a digital signage service provider. Financial terms of the deal were not disclosed.
This is M&A deal number 109 that ChannelE2E has covered so far in 2021. See all technology M&A deals for 2021 and 2020 listed here.
Convergent is based in Alpharetta, Georgia (near Atlanta) with offices in Toronto, Ontario, Canada. The company’s clientele includes Fortune 1000 retailers as well as organizations in such vertical markets as healthcare, convenience, financial services and the U.S. government, the seller says.
Convergent’s Digital Signage as a Service (DSaaS) includes content creation, management and maintenance services.
SageNet Acquires Convergent: Executive Perspectives
SageNet sees the deal as an opportunity to propel DSaaS forward while disrupting traditional digital signage hardware and software companies.
In a prepared statement about the deal, SageNet CEO Daryl Woodard said:
“Bringing the already extensive capabilities of our two companies together creates an organization with uniquely broad yet focused expertise. Both companies have tremendous experience deploying large, widely dispersed multisite networks with an emphasis on reliability at scale. Combining Convergent’s proficiency in data integration and hyper-targeted marketing with SageNet’s full lifecycle methodology, cybersecurity expertise, multiple NOC/SOCs and nationwide support organization creates a digital experience partner with unrivaled capabilities.
The market is currently fragmented, with many companies offering digital signage but few providing turnkey solutions. Even fewer monitor and maintain a system after its launch. Fewer still offer advanced data and device integration. With this acquisition, SageNet is perfectly positioned to provide customers everything they need for a truly holistic and engaging digital experience.”
Added Convergent President John Campbell:
“Convergent and SageNet are proven leaders in the digital signage industry. Together, we will deliver a much broader scope of services with the combined talent and expertise of two passionately customer-focused organizations.”
SageNet, founded in 1981, has M&A experience. Example deals include:
- 2018: Acquired Aware Software (formerly Wandering Wifi), a provider of IoT/Visibility solutions, and managed wireless infrastructure and support across the hospitality, retail, restaurant, grocery, enterprise, healthcare and education industries.
- 2015: Acquired the cybersecurity business unit of Turnberry Solutions.
- 2013: Acquired Spacenet Inc., a provider of satellite communications and wide-area networks.
Digital Signage Market Size, Growth: Reality Check
Digital signage certainly is a large market with a track record for growth. The COVID-19 pandemic has pressured digital signage equipment, content and services sales in recent months — especially in such vertical markets as retail, transportation and sports/entertainment.
Still, various market research suggest digital signage will remain a healthy, growing market for years to come. The anecdotal evidence:
- Back in 2015, the digital signage market was predicted to enjoy an 8.18 percent CAGR through 2020, while reaching $23.76 billion in full-year revenue for 2020.
- In 2019, the digital signage market was predicted to enjoy a 7.3 percent CAGR through 2024, reaching $29.6 billion in full-year revenue for 2024.
- Also in 2019, the digital signage market was predicted to enjoy an 8.1 percent CAGR through 2026, reaching $32.12 billion by 2026, according to Allied Market Research.
- In 2020, the U.S. digital signage market was predicted to generate a 6.4 percent CAGR through 2027, according to Grand View Research.
ChannelE2E is checking to see if market researchers have adjusted there digital signage market forecasts amid the continued pandemics. If we find new or revised data, we’ll update this article accordingly.