Pax8 Acquires Microsoft Cloud Service Provider TVG; Continues Global Cloud Marketplace Expansion
Pax8 continues to expand its cloud and channel marketplace for MSPs worldwide. The latest move involves Pax8 acquiring TVG, a Microsoft cloud services partner and software distributor in northeastern Europe. Financial terms of the deal were not disclosed.
This is technology M&A deal number 22 that ChannelE2E has covered so far in 2022. See more than 1,000 technology M&A deals for 2022, 2021 and 2020 listed here.
The TVG acquisition propels Pax8 into the Baltic States of Latvia, Lithuania, and Estonia, the buyer said. Headquartered in Riga, Latvia, TVG has been operating in the Baltic States for over 20 years and serves more than 1,000 partners, the seller said. TVG is an authorized Microsoft CSP Indirect Provider, and its portfolio includes Adobe, Corel, Altaro, TeamViewer, ManageEngine, and several other industry-leading global technologies, the buyer noted.
Pax8 Cloud Marketplace for MSPs: Business Background, IPO Aspirations?
Pax8, based in Colorado, runs a cloud-based marketplace that allows MSPs and channel partners to source various SaaS applications and business services. If we had to guess, Pax8 is aligning organic growth and acquisitions to make a potential run at an IPO (initial public offering) within two years or so.
Pax8 has been busy on the funding and M&A fronts. Among the milestones to note:
- Pax8 raised $96 million in funding in January 2021;
- acquired Microsoft Azure and 365 cloud partner Resello;
- acquired Microsoft Azure cloud partner Wirehive;
- announced a UK leadership team for expansion into Europe; and
- acquired Sea-Level Operations for MSP education services.
Pax8 was in rapid growth mode even ahead of the acquisitions. The company has ranked in the Inc. 5000 for three consecutive years — No. 68 in 2018, No. 60 in 2019, and No. 111 in 2020. The Inc. 5000 honor ranks Pax8 among the fastest-growing private companies in the United States — though actual revenue dollar figures and profit/loss figures are undisclosed.
Pax8 and some rivals have evolved to compete in multiple markets. Rivals on some fronts include SaaS marketplace provider AppSmart; cloud distributors such as Ingram Micro and D&H Distributing; MSP marketplace operators such as ConnectWise; cloud solutions providers such as Sherweb; and potentially the recently launched Datto Commerce platform.
Pax8 Acquires TVG: Executive Perspectives
In a prepared statement about the TVG acquisition, Pax8 CEO John Street said:
“Gartner predicts that end-user spending on public cloud services will reach $482 billion in 2022. Now more than ever, it is critical that companies migrate their technology to the cloud to maintain pace with the evolving market demands. This acquisition enables Pax8 to expand into the Baltic States to offer partners access to its award-winning marketplace, education, and localized support. Together, we are enabling partners worldwide to capitalize on the market opportunities with cloud technology and drive the digital transformation.
“We are excited to welcome TVG employees and partners that share in our values vision to provide a world-class client experience. We look forward to building on new successes together.”
Added Harald Nuij, managing director at Pax8 Europe:
“With its technology and vision, Pax8 is having an incredible impact on SMBs worldwide by empowering them with enterprise-grade cloud solutions. We are thrilled to welcome TVG to offer partners in the Baltic States access to innovative solutions, streamlined processes, professional services, and comprehensive support to build robust technology stacks, delivering greater value to their clients.”