MSP Acquired: NetGain Technologies Buys Progressive Computer Systems
Lexington, Kentucky-based managed IT services provider NetGain Technologies has acquired Progressive Computer Systems Inc (PCS) from Raleigh, North Carolina. Terms of the deal were not disclosed.
Founded in 1987 by Lisa Mitchell and Mark Michal, PCS provides services to the Triangle and Triad areas of their home state. The company counts HP, Cisco, Citrix, Microsoft, and VMware as partners.
The companies call the deal a “combined effort” between the ownership of NetGain and PCS. Both co-founders and employees of PCS will join the NetGain team, they said.
Tim Burke, CEO of NetGain Technologies, commented on the deal:
“We’re thrilled to welcome PCS’s incredibly talented team, service capabilities, and product offerings into the NetGain family. We look forward to leveraging PCS’s impressive track record of success to expand our footprint across the Southeast and continue delivering best-in-class service and products to all of our clients.”
The deal expands NetGain’s position in the eastern United States. The company says it plans to follow the acquisition with increased investment in sales and marketing, which will help grow its footprint in North Carolina.
Lisa Mitchell, co-founder of PCS, said:
“Our clients and employees were major factors in our partnership decision. NetGain’s high level of client focus, coupled with their culture and family-first values, make them a great fit for our organization. In addition, together we can provide more robust services to our clients and expand the depth of our expertise, which benefits our clients and employees alike.”
Originally founded in 1984 as Inacom, the company changed its name to NetGain in 2000 and now has seven offices in six states with national capabilities. The company has more than 150 employees, according to its website.
In December 2018, NetGain received an investment from private equity firm Evergreen Services Group. The cash influx allowed the firm to “reignite” its acquisition strategy, according to the NetGain website.
As part of the Evergreen deal, Tim Burke was moved into the CEO position, taking over for Jason Jacobson.
Evergreen, which is backed by Alpine Investors, has acquired around a dozen MSPs since 2018. A number of those deals – including NetGain and a similar transaction involving Wolf Consulting – involved gradual, post-deal CEO transitions that were brewed into the M&A negotiations.