Thrive Acquires Financial Services MSP InfoHedge

Thrive President Marc Pantoni

Thrive, a Top 100 Vertical Market MSP, has acquired InfoHedge Technologies, an MSP and private cloud provider focused on financial services clientele. Financial terms were not disclosed.

Thrive says InfoHedge, based in New York, will become a dedicated business division focusing on the alternative investment management and hedge fund community. The company also says there are plans to expand InfoHedge’s application hosting services and geographic reach.

InfoHedge, launched more than a decade ago, recently won the 2018 Alternative Investment Award for excellence. The company services nearly 400 hedge fund, REIT, asset management, and family office customers. While its headquarters are in New York, the company also has employees in Boston, Chicago, Dallas, San Francisco, Connecticut, and Florida.

InfoHedge’s five managing partners will continue to run the division within Thrive — reporting to Thrive President Marc Pantoni —  who also is an M&A veteran.

Private Equity Fueling MSP Acquisitions

Like many MSPs that are driving M&A deals these days, Thrive has private equity owners. M/C Partners has owned Thrive since late 2016. Although the MSP does not publicly disclose its financial results, anecdotal evidence suggests Thrive has enjoyed substantial growth under M/C Partners’ ownership. The MSP had languished a bit under the previous ownership of Staples (2007), MetTel (2014), ChannelE2E believes.

Meanwhile, MSPs in the financial services sector are hot M&A targets. For instance, earlier this year private equity firm H.I.G. Capital invested in Eze Castle Integration (ECI), a well-known MSP supporting financial services customers.

Additional insights from Joe Panettieri.


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    Nicholas Brander:

    Many of the so called MSP’s in the finance vertical are being cannibalized by the cloud as their consulting practices were propped up by ‘hybrid’ cloud. As the exodus to the public cloud begins many are getting out while their businesses still look attractive.

      Joe Panettieri:

      Hi Nicholas,

      Thanks for your note and readership. I don’t think it’s fair to paint with such broad strokes. Each deal has its own nuances and motivations. Many of the sellers are exiting at sky-high valuations because their EBITDA profit margins and actual EBITDA dollars have never been higher. Though I concede: Those types of sellers are harder and harder to find.

    Todd Hussey:

    But their EBITDA etc will/are starting to go south due to cloud.

      Joe Panettieri:

      I don’t think it’s fair to assume EBITDA will drop. Yes, cloud could apply some pressure. But none of us have a first-hand look at Thrive’s revenue mix, margins, etc.

    Todd Hussey:

    I’m not talking talking Thrive specifically.

    Robert Baugh:

    Interesting article and comment thread. I agree cloud can eat margins but it can also open up the new strategic direction for MSPs breaking out of the lifestyle business route: professional services. The clearly aligned stream which many already offer are professional services around IT, security etc. Fewer (I believe) offer cloud consulting. We at Keepabl are working with the growing number of MSPs looking to add GDPR consulting. By using a GDPR platform, MSPs can offer a wraparound service such as get-compliant projects, periodic reviews, vCPO contracts with use-it or lose-it, etc. Provided the platform is suitable, and comprehensive, the MSP can be confident of getting the client into a good place with limited training time and build GDPR recurring revenue.

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