MSP Magna5 Sells Telecom Business To ITL; Seeks Managed Services Acquisitions
Magna5, a managed IT services provider (MSP) backed by private equity firm NewSpring Holdings, has sold its telecom business to International Telcom LLC (ITL). The move allows Magna5 to focus purely on MSP-related services, the seller said. Financial terms were not disclosed.
This is technology M&A deal number 729 that ChannelE2E has covered so far in 2021. See all technology M&A deals for 2021 and 2020 listed here.
Magna5 and ITL Business Focus Areas
Magna5, backed by NewSpring Holdings since November 2016, has been growing its MSP practice both organically and through acquisitions. Organic sales have expanded 20 percent over the past year, the MSP indicated. Also, Magna5 acquired SpinnerTech in June 2021 and NetServe365 in 2017.
The Magna5 business now supports more than 300 customers and manages more than 12,000 devices, according to the MSP’s website. Key services include cybersecurity, backup and disaster recovery (BDR), cloud and professional services.
Meanwhile, ITL gains various telecom products and services from Magna5. The telecom services provider has been deploying new switching facilities in California, Florida, New Jersey, New York, Texas, and Washington. The company also says it plans to increase its portfolio of SD-WAN products and services.
Magna5 Sells Telecom Business: Executive Perspectives
In a prepared statement about the telecom asset sale, Magna5 CEO Bob Farina said:
“I’m proud to lead our Magna5 team as we focus our efforts on executing our strategy to build a market-leading Managed IT Services business. The sale of our Telecom business allows our organization to focus where we see the greatest opportunity for growth going forward. We are investing significantly in our organization to enhance our offerings for cybersecurity, data recovery, cloud services, and many other areas so we can better service the needs of our rapidly growing customer base. Finally, I would like to thank the dedication of the Telecom business’s employees and customers that we had the opportunity to work with and serve during our ownership.”
Added Jim Ashton, general partner at NewSpring Holdings:
“The demand for managed IT services in the lower middle-market is paving the way for Magna5’s booming organic growth. At the same time, the market is extremely fragmented, which provides an exciting opportunity for us to leverage our existing platform and execute our M&A strategy to build Magna5 into an even more formidable managed IT services player.”
Concluded Kevin Alward, CEO of International Telcom:
“ITL’s core company focus is about delivering superior connectivity, data analytics, and voice technology. We look forward to adding new services and making them available to all ITL clients.”