MSP Acquired: Evergreen Services, NetGain Buy TruTechnology
Evergreen Services Group has acquired TruTechnology, a Florida-based MSP (managed IT services provider). Evergreen will tuck TruTechnology into NetGain Technologies, a platform-sized MSP. Financial terms of the deal were not disclosed.
This is technology M&A deal number 475 that ChannelE2E has covered so far in 2021. See all technology M&A deals for 2021 and 2020 listed here.
Evergreen, backed by Alpine Investors, has made dozens of MSP acquisitions and investments since 2018 — including the NetGain deal of December 2018. NetGain, in turn acquired Progressive Computer Systems Inc (PCS) of Raleigh, North Carolina in December 2019. Also, Evergreen acquired and tucked Arnet Technologies and LK Tech into NetGain in 2020.
Now, Evergreen and NetGain are back for an M&A encore with the TruTechnology acquisition. TruTechnology, founded in 2002, has expanded from voice, data and video services to offer managed and cloud services for SMB customers across Northern Florida. As part of the deal, TruTechnology expects to scale its business by tapping into NetGain’s marketing, sales, human relations, and finance capabilities, the companies say.
Evergreen, NetGain Technologies Acquire TruTechnology: Executive Perspectives
In a prepared statement about the deal, NetGain Technologies CEO Tim Burke said:
“This is a major milestone for the organization. We have been really disciplined as we’ve searched for our first partnership in the state of Florida. When I met Doug and heard more about TruTechnology, I was incredibly impressed with their commitment to excellent client service and their process-driven approach to IT. Doug and the entire team are going to make us a better company and I could not be more excited about the future we’ll build together.”
Added Doug Lowenthal, CEO of TruTechnology:
“It was obvious in our early discussions with the NetGain Technologies team that they were genuinely interested in us continuing to do what we do best for our clients, staff, and community, with the added benefit of their support. The more I learned about the NetGain family, the more I found our company cultures and core values were in complete alignment. Our employees and clients are what’s most important to us, which is why we chose to partner with a people-first, client-focused organization like NetGain Technologies. I’m excited for my team and myself as we work with NetGain to continue offering the best IT services to the businesses in our area.”
MSP Valuation Estimator: An Online Tool for MSP Owners
Meanwhile, Evergreen Services Group continues to educate the MSP market about M&A activity. The company’s MSP Valuations website, for instance, allows MSPs to measure their potential company valuation based on such variables as revenue, growth rate, EBITDA, capital expenditures, customer retention and customer concentration.
Congrats on this next chapter. You have an amazing team, and I expect only the best from you guys.