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Accounting Firm Acquires MSP: MNP Buys Next Digital

Canadian accounting and consulting firm MNP has acquired managed IT service provider (MSP) firm Next Digital. Financial terms were not disclosed.

This is M&A deal 273 that ChannelE2E has covered so far in 2020. See the complete M&A deal list here.

MNP gains MSP-centric expertise that spans digital services, cybersecurity, applications and operations, and technology advisory services, the buyer said.

Founded in 2003, Next Digital has 54 employees working in offices throughout Alberta, including the cities of Edmonton, Calgary, and Red Deer. The company provides outsourced IT services and support to Canadian businesses, with a special focus in Alberta and western Canada.

Next Digital’s core services include managed IT, hardware and software procurement, IT project management, data protection, and cloud services. Next Digital’s current leadership team — Andrew Jackson, Shawn Kubiski, and John McLughlin — will join MNP as partners.

MNP Acquires Next Digital: A Growth Strategy

Sean Devin, partner, MNP

Sean Devin, partner and national leader of MNP’s Technology Solutions practice, commented:

“The needs of Canadian organizations are quickly evolving in this dynamic environment, and we are constantly working with our clients to better understand how we can best support them. Business goals remain broadly the same from one decade to the next – companies are always looking for ways to operate more efficiently, engage effectively with customers, and to continue to grow – but the tools available to support their journey are always evolving. This merger reflects our commitment to always look for new ways, including the use of new technologies, to help our clients reach their full potential.”

John McLaughlin, managing partner, Next Digital, said:

“We’ve had the opportunity to work with MNP’s Technology Solutions team with some mutual clients over the past few years. Through those engagements, we recognized our Managed Services offering would complement MNP’s current Technology Solutions practice. As mergers have always been a part of our growth strategy, we felt an opportunity to merge with MNP would be worth exploring. During our discussions, we became increasingly more impressed with the firm’s leadership and client commitment. Going through the merger process we could not have imagined a better fit.”

Founded in 1958, MNP has more than 85 locations and 5,500 team members across Canada. The company specializes in accounting, consulting and tax, as well as specialized expertise in every sector and area of business, according to its website.

MNP has been working to expand its technology practice in recent years. In May 2020, MNP acquired T4G, a Toronto-based applied data firm, adding 100 professionals and strengthening capabilities in data engineering, analytics, cloud transformation, and internet of things, according to the company. In June 2019, MNP expanded its Technology Solutions practice by acquiring Mississauga, Ontario-based IT consultancy firm Mantralogix.

Accounting Firms Acquire MSPs: Steady Trend

Meanwhile, accounting companies and MSPs are becoming more entwined as firms seek to offer services beyond their traditional financial work. These can include technology consulting, risk mitigation, cybersecurity, and managed IT services.

Some of the more recent M&A deals that ChannelE2E has tracked include:

  1. April 2020: Wipfli, a US accounting and consulting firm, acquired Microsoft Dynamics partner Tidestone Solutions.
  2. February 2020: Cherry Bekaert, an accounting firm from the southeastern United States, acquired icimo, a data analytics and technology services firm from Raleigh, North Carolina.
  3. January 2020: TJS Deemer Dana (TJSDD) acquired Vertisys of Atlanta, Georgia.

See a list of accounting firms that acquired MSPs here.

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