MSP Merger Creates $300 Million Annual Revenue Business

A merger of MSPs will create a $300 million annual revenue business with roughly 300 employees. The M&A deal involves ACP CreativIT/Camera Corner Connecting Point combining with Citon Computer Corporation and its sister companies—NetTel, NetGuard and TLX Communications.

This is technology M&A deal number 23 that ChannelE2E has covered so far in 2022. See more than 1,000 technology M&A deals for 2022, 2021 and 2020 listed here.

MSP M&A: Company Footprint

In this deal, the overall business footprint includes flagship offices in Buffalo Grove, Illinois; Green Bay, Wisconsin; and Duluth, Minnesota.

The controlling shareholder of the combined business is The Zaf Group, the family office of Mike and Robin Zafirovski. The firm “aims to partner with well-run family/founder-led businesses and own them in perpetuity.”

ACP CreativIT’s portfolio of IT services spans:

  • Audio/visual (AV)
  • Information technology, cloud and cybersecurity
  • managed IT and managed security services
  • unified communications

Citon’s SMB services and solutions include:

  • IT hardware
  • cloud services
  • data center hosting
  • managed services
  • professional services
  • data cabling and installation
  • on-premise and video security offerings
  • on-premise and hosted phone systems.

Citon continues to be led by founding partners Steven Dastoor and Sean Dean, and the Citon team has been retained.

MSP M&A: Executive Perspectives

Executives from each of the businesses along with the investor team weighed in on the M&A deal.

In a prepared statement, Dastoor said:

“We have been approached by many potential partners over the years, but only this finally felt right to us. We are excited about the benefits of scale to our customers and employees, yet the opportunity to preserve and build upon our culture and community footprint.”

Added Dean:

“We see many opportunities for ACP and CCCP to make us stronger, and in turn lots that Citon can bring to the table to shape our joint future together as well. We see this merger as having the potential to be a textbook case of one plus one equals more than five.”

CCCP CEO Rick Chernick  noted:

“I have known Steven and Sean for two decades, and I am hard-pressed to think of better partners we could be welcoming into our family of companies.”

ACP CreativIT CEO Scott Dunsire added:

“We are pleased to welcome Citon, its sister companies, Steven and Sean, and all of their employees to the ACP CreativIT team. We are excited about what we can all do together.”

The Zaf Group dounder Mike Zafirovski noted:

“We feel a strong alignment of values with Citon—they demonstrate that if you take care of your employees and customers, good things happen.”

The Zaf Group Partner Dan Braga concluded:

“We have been lucky to meet with more than 200 terrific owners and founders over many years, but our conversations with Steven and Sean over the last two and a half years have really stood out. We look forward to doing continued great things with them and their team.”

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