MSP Acquisition: OneSource Acquires ICT Technical Services
OneSource Technology, a managed IT partner serving businesses in Kansas and Oklahoma, has acquired ICT Technical Services, a Wichita-based managed IT provider serving small and mid-sized business clients.
OneSource and ICT began M&A discussions earlier this year, resulting in a deal being announced this week. Roughly 25 managed services customers will transition to OneSource. John Shamasko, who founded ICT in 2009, will exit the business as part of the deal. ChannelE2E is checking to see if any ITC employees will transition to OneSource as part of the deal.
OneSource Founder Paul Bush and Shamasko have spent recent days calling ICT’s clients, and assuring them of a smooth transition to OneSource’s services. As part of that effort, calls and emails to ICT Technical Services now roll over to OneSource’s technicians.
Financial terms were not disclosed, but Service Leadership Inc. — a consulting firm focused on MSPs and VARs — suggests MSPs are worth about six to seven times their annual EBITDA. Some valuations can be higher based on growth rates and profitability track records. We’re checking in with OneSource with follow up questions.
This is the second MSP- and CSP-oriented M&A deal we’ve spotted this week. The other appears to be far larger in scale. Indeed, Great Hill Partners, a private equity firm, acquired majority control of Evolve IP — a cloud services provider that will use the money to fund more acquisitions.
Special thanks to Ulistic for the heads up about the OneSource-ICT deal.
To track all M&A activity across the IT channel, visit here.