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Evergreen Services Group Acquires NetGain Technologies

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NetGain Technologies President Brendan Jacobson
NetGain Technologies President Brendan Jacobson
Former NetGain Technologies CEO Jason Jacobson

Evergreen Services Group has invested in NetGain Technologies, a well-known managed services provider (MSP) in Lexington, Kentucky, the companies have confirmed to ChannlE2E. It sounds like the investment involves majority control of NetGain -- i.e., an acquisition -- though the MSP will continue to operate independently under its leadership team.

Evergreen, backed by Alpine Investors, has made 12 MSP investments so far in 2018. Earlier deals have involved Wolf Consulting, Executech, Jenlor, Interlaced, and Integritek, among others. The deals typically allow MSPs to maintain their existing leadership teams and continue running their businesses. Evergreen’s additional financial muscle typically assists with talent, technology and other types of investments.

Looking ahead, NetGain essentially becomes a platform company within the Evergreen Services Portfolio. That means NetGain is large enough and well-funded to make tuck-in acquisitions.

NetGain Technologies: MSP Business Focus

NetGain provides IT services to midsized businesses across the South Central United States. The company's 85 engineers and technicians hold 250 technical certifications, and support more than 10,000 computer users. The company is headquartered in Lexington with offices in Chattanooga, Tennessee; St. Louis, Missouri; Little Rock, Arkansas; Louisville, Kentucky; and Cincinnati, Ohio.

Multiple companies have been attempting to acquire NetGain Technologies in recent months, sources across the MSP industry say. The business is highly respected and well-known within private equity and MSP investor circles.

The company is not to be confused with Netgain (lower-case G), a provider of IT-as-a-service (ITaaS) that attracted $25 million in funding back in 2017 and made multiple acquisitions thereafter.

Evergreen Services Group Acquires NetGain: Executive Perspectives

In  prepared statements, multiple Evergreen and NetGain executives shared perspectives about the deal. Among those weighing in:

Evergreen Services Group CEO Jeff Totten

Evergreen CEO Jeff Totten:

“NetGain Technologies is one of the largest and best operated IT service providers that we have encountered in building Evergreen. We’re thrilled about the opportunity to partner with NetGain’s world-class management team and to invest in NetGain’s growth and continued commitment to exceptional customer service.”

NetGain Technologies CEO Jason Jacobson:

“This is an incredible opportunity for our business. Evergreen’s approach to investing in companies for the long-term and allowing them to operate independently gives us confidence that our brand, customers, and employees will have a much larger opportunity under Evergreen.”

NetGain Technologies President Brendan Jacobson:

“The entire NetGain team has worked hard to build a world-class IT services company. Evergreen’s investment confirms our standing as one of the most successful IT services providers in the country. It is extremely gratifying to achieve this new milestone which will fuel the company’s expansion strategy.”

Evergreen Services Group President Brad Wittwer

Evergreen President Brad Wittwer:

“NetGain Technologies stood out as a stellar MSP for myriad reasons, but its team was the key factor for me. The entire team is committed to values that resonate with Evergreen, and they are highly-effective in service delivery, which is readily apparent in NetGain’s outstanding customers service ratings. I have no doubt that our other operators will learn from NetGain Technologies and can share lessons in return to contribute to NetGain’s growth.”

Evergreen Services Group: Leadership Team, Business Strategy

Wittwer shared more perspectives about Evergreen and his role at the company in an interview with ChannelE2E. We'll post that interview within minutes.

What does Evergreen look for in terms of MSPs and their business KPIs (key performance indicators)? Evergreen Head of M&A Ramsey Sahoun offers answers in this video:

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Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.