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Microsoft Dynamics Partner Merger: InterDyn Artis Joins LBMC

LBMC Technology Solutions and InterDyn Artis have merged. The deal combines an IT consulting firm with a Microsoft Dynamics solutions provider. The combined company, with roughly 100 employees, will carry LBMC’s name. Financial terms were not disclosed.

This is M&A Deal Number 22 that ChannelE2E has covered in 2020. See the complete M&A deal list here.

InterDyn Artis, founded by Gary Artis and Kurt Voorhies in 1989, is a Microsoft Dynamics Gold Certified Partner. The company is headquartered in Charlotte, North Carolina.

LBMC Technology Solutions, founded in 1996, offers technology, software, managed IT and security solutions. The company has offices in Brentwood and Knoxville, Tennessee and a presence in Atlanta, Georgia.

Armed with the InterDyn Artis team, LBMC is now a top-four Microsoft Dynamics ERP Partner, a top-four Sage Intacct Partner, and a top 15 value-added reseller (VAR) in the United States, the company asserts.

LBMC and InterDyn Artis Merger: Executive Perspectives

Stacy Schuettler

In a prepared statement,  Stacy Schuettler, president of LBMC Technology Solutions, said:

“We’re very excited to have the InterDyn Artis team join our company They bring great depth and knowledge in Microsoft solutions and have a proven track record of helping clients navigate the accelerating evolution of technology.”

Added Gary Artis, co-founder of InterDyn Artis:

‘“Merging with LBMC Technology Solutions was clearly the natural next step for InterDyn Artis. We have been partners and personal friends in the InterDyn Alliance for many years and have worked together on countless projects. I know our clients will benefit from the expanded portfolio of products and services LBMC Technology Solutions can provide. Just as importantly, the InterDyn Artis team members will have an exciting trajectory for professional growth as well. I am confident that our combined team will continue to build upon our historical individual success and accelerate the ability to become an even stronger and higher valued technology partner for our clients.”

Microsoft Dynamics: Partner Mergers, Acquisitions and Valuations

Here’s an ongoing list of Microsoft Dynamics partner mergers and acquisitions.

To reiterate, LBMC did not disclose the merger’s valuation or financial details.

In some rare instances, we’ve seen some pure-play MSP valuations reach 8X to 10X annual EBITDA. But ChannelE2E cautions managed IT service provider (MSP) buyers, sellers and financiers: Those lofty valuations are extremely rare deals, typically involving larger MSPs with strong annual recurring revenue growth and healthy profit margins. Or in some cases, a desperate buyer willing to overpay.

The more reasonable valuation ChannelE2E has heard is 6.5X annual EBITDA — with many deals ranging from 4X (yes, that low) to 8X annual EBITDA, based on a range of factors (cash up front vs. earnout, percentage of revenues from monthly recurring services, etc.), according to ChannelE2e interviews with key M&A sources.

To estimate your potential valuation, check out the MSP Valuations worksheet from Evergreen Services Group, a private equity-backed team that has acquired and/or invested in  more than a dozen MSPs.

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