MSP M&A: Marcum Technology Acquires BinaryNetworks
Marcum Technology has acquired managed services provider BinaryNetworks for an undisclosed amount.
This is technology M&A deal number 1,024 that ChannelE2E has covered so far in 2022. See more than 2,000 technology M&A deals involving MSPs, MSSPs & IT service providers listed here.
Marcum Technology Acquires BinaryNetworks
Marcum, founded in 2001, is based in Melville, New York. The company has 108 employees listed on LinkedIn. Marcum’s areas of expertise include Data Security, Project Management, Cloud Services, Software, Cybersecurity, Infrastructure Solutions Services, Strategic IT Consulting, Digital Forensics, Data Analytics, Data Storage, IT Due Diligence, Digital Transformation, Enterprise System Selection, CISO as a Service, CIO as a Service, Business Continuity and Disaster Recovery, Blockchain and Cryptocurrency Services, Value Added Reseller, Managed Service Provider (MSP, Remote IT Service Desk, IT Staff Augmentations, Financial Solutions, ERP Selection and Implementation, FP&A Selection and Implementation, and Cybersecurity Assessments and Penetration Testing.
BinaryNetworks, founded in 2011, is based in Rockville, Maryland. The company has six employees listed on LinkedIn. BinaryNetwork’s areas of expertise include Network Security & Backup Solutions, New Server installations, upgrades & monitoring, Complete IT outsourcing, Managed Services, Help Desk Services, IT Assessments & Recommendations, Acquisition of New Hardware and Software, Cloud Computing, Cybersecurity, Strategic IT Consulting, Intelligent Automation RPA/AI/ML, Blockchain/Cryptocurrency, IT Staff Augmentations, Financial Solutions (ERP/ FP&A, IT & Digital Transformation, Disaster Recovery, and Enterprise System Selection.
The deal happened at the same time as a merger between parent companies, accounting firm Marcum LLP and CPA firm E. Cohen and Company, the latter of which BinaryNetworks was a subsidiary.
The firm combined into Marcum Technology’s managed services and infrastructure lines of business, adding 15 associates to the team, the company said.
Marcum Technology Acquires BinaryNetworks: Leadership Insight
Peter Scavuzzo, CEO of Marcum Technology and principal/chief digital information officer of Marcum LLP, commented:
“The synergies between BinaryNetworks and Marcum Technology are substantial and will create even greater opportunities to support clients’ businesses with strategic, high-impact initiatives that drive growth. As part of Marcum Technology, the BinaryNetworks team will be able to leverage additional intelligence and our deep experience to address the myriad issues embedded in complex technology challenges.”
Jeff Savitsky, managing director, BinaryNetworks, said:
“Our close relationship with our clients as their single-source technology advisor will continue, but with the significant advantage of Marcum’s deep resources as a national service provider that is part of one of the country’s leading CPA firms. We know that service delivery is critical to our clients’ success. BinaryNetworks and Marcum Technology are diligently working to ensure that this combination results in a smooth transition that positions us to deliver even greater value to our clients.”
The CPA-MSP Trend
This deal is indicative of a recent trend from accounting companies, which are increasingly seeking to provide a full suite of technology consulting, risk mitigation, cybersecurity, and managed IT services to their clients.
Many of those accounting firms are diversifying into the IT services sector through M&A deals, as Forrester Research principal analyst Jay McBain and ChannelE2E have frequently pointed out.
These deals are often a way to add predictable monthly recurring revenue to an accounting firm’s ledger – the exact sort of revenue that MSPs and cloud service providers are well-equipped to deliver.
ChannelE2E’s ever-growing list of M&A deals in the sector can be found here.