MSP M&A: Executech Acquires Flagstaff IT
Executech, backed by Evergreen Services Group, has acquired Flagstaff Information Technology & Communications LLC — an MSP that has security, infrastructure and cloud services expertise. Financial terms of the acquisition were not disclosed.
This is technology M&A deal number 239 that ChannelE2E has covered so far in 2022. See more than 1,000 technology M&A deals involving MSPs, MSSPs & IT service providers listed here.
Flaffstaff — aptly based in Flagstaff, Arizona — was founded in 2007. The company has 21 employees listed on LinkedIn. The seller works with small and medium-sized businesses across Arizona. Key services offered include Flagstaff CEO Brain Kelleher will shift to VP of Northern Arizona at Executech.
The acquisition increases Executech’s geographical reach into Northern Arizona. Executech also has a footprint in Phoenix, Arizona through an earlier acquisition.
Describing this latest acquisition, Executech CEO DJ Dorff said:
“We are excited to bring Brian and his team into the Executech family. I was impressed at the level of quality service and dedication the entire group at Flagstaff IT provides to their clients and employees. Like Executech, they have made high-level technical support available and accessible to small business owners in the Arizona region. We look forward to partnering with their team and supporting their clients with additional resources.”
Added Brian Kelleher, CEO of Flagstaff IT:
“We are thrilled to join the Executech team and tap into the knowledge and resources that come with being part of a larger organization. We are looking forward to the opportunities for growth and collaboration this partnership will bring to our employees and our clients.”
Executech: Multiple MSP Acquisitions
This acquisition is the seventh major acquisition by Executech, backed by Evergreen Services Group in the past 12 months. Executech and Evergreen say they will continue to pursue acquisition opportunities.
Past deals have included:
- California Computer Options Inc (CCO).
- Canadian IT support provider Dyrand Systems.
- Max Technology, an IT services provider in Carbon County, Utah.
- Pact-One, a vertical market IT service provider focused on the dental practice industry from Las Vegas, Nevada.
- DSA Technologies, a California-based full-service IT provider. Financial terms were not disclosed.
- Seattle, Washington’s Z7 Networks
- Spokane, Washington’s HiTechnique.
Executech Parent Evergreen Services Group: The MSP Investment Strategy
Evergreen Services Group, the parent of Executech, organizes various MSP investments into regional businesses groups. The MSP groupings include:
- Executech in the Western United States and Canada;
- Lyra Technology Group in the Northeast and Midwest United States and Eastern Canada; and
- Netgain in the Midwestern and Southeastern United States.
Evergreen, backed by private equity firm Alpine Investors, has completed nearly 50 MSP investments across North America since 2017. Extending beyond traditional MSPs in the SMB sector, Evergreen has also acquired MSPs focused on managed security services, managed SAP cloud applications, and financial services, among other areas of expertise.
It’s a safe bet Evergreen will remain in M&A model. The evidence: Alpine Investors raised $2.25 billion in 2021, earmarking a portion of the funds for MSP investments and acquisitions by Evergreen, ChannelE2E confirmed at the time of the report.