CompassMSP Acquires Assets of Tarrytech Computer Consultants
This is technology M&A deal number 429 that ChannelE2E has covered so far in 2021. See all technology M&A deals for 2021 and 2020 listed here.
Based in Tarrytown, New York, Tarrytech will become part of the CompassMSP family; although, like past businesses acquired by CompassMSP, it will retain its current team and location. It will operate under the name “Tarrytech: A CompassMSP Company,” and continue to be led by Jamie Kudla as general manager, the company announced.
The Tarrytech office will operate within CompassMSP’s northeast region, led by regional vice president Steve Saehrig in Hartford, Connecticut, according to CompassMSP. The deal will enhance CompassMSP’s ability to serve clients in the tri-state area, the company said.
CompassMSP Acquires Tarrytech: A Long-Term Goal
Jamie Kudla, general manager, Tarrytech, commented:
“We are proud of the tremendous growth of Tarrytech since 2003. As we approached our 20-year milestone, it became clear that our next big step in growth was to join a larger community of committed and experienced IT professionals. We are very pleased to become part of CompassMSP.”
Ari Santiago, CEO, CompassMSP, added:
“Bringing Tarrytech into the CompassMSP family has been a goal of mine for a while. I have known Jamie for years and have always been impressed by him and his business. This is a great combination for our team and clients.”
Josh Kotler, chief strategy officer and head of acquisitions at CompassMSP, said:
“We believe strongly in our operating framework and in acquiring companies that share our mission and values. Our deliberate approach to growth amplifies opportunities for everyone involved. Tarrytech is a mature, proactive managed services provider comprised of experienced professionals. We are excited to welcome this team of highly skilled people to CompassMSP. Acquiring similar MSPs aligned with our culture, vision and proactive delivery model remains a central part of our growth strategy.”
CompassMSP’s M&A Plays
This is CompassMSP’s twelfth deal. The company has more than 220 employees and offices in Florida, Illinois, New Jersey, Pennsylvania, and Wisconsin. Compass works in the legal, financial, healthcare, and manufacturing verticals, providing on-premises and cloud solutions that range from managed IT and VOIP to software development.
CompassMSP has long touted its “targeted acquisition strategy,” focused on strong vertical market MSPs in the SMB sector.
Past acquisitions include:
- February 2021: Hartford, Connecticut-based IT Direct.
- October 2020: The assets of Chicago-based MSP Mother Network Guardian (MotherG).
- January 2020: Western Digitech, a Florida-region provider of legal IT services.
- June 2019: GreenPoint of Princeton, New Jersey.
- March 2019: Miami-based Dynamic Media Technologies.
- January 2019: TS Tech Enterprises, an MSP that supports dental practices in the Wyomissing, Pennsylvania, area.
To fund acquisitions, CompassMSP uses a combination of cash generated from the business alongside a combination of debt and equity. “Our funding model is part of a strong value proposition for the seller,” CompassMSP’s SVP of central operations, Tom Praschak, previously told ChannelE2E.