AccountabilIT has acquired ClearPointe Technologies, a Microsoft Azure-focused MSP specializing in cloud-based transformations, migrations, and managed services. WestView Capital Partners, a Boston-based private equity firm, funded the deal. Financial terms were not disclosed.
AccountabilIT and ClearPointe have similar focuses.
- AccountabilIT, founded in August 2016, specializes in application management, database administration, cloud transformation and cloud managed services. The company is based in Scottsdale, Arizona.
- ClearPointe, founded in 2000, offering managed services for data center environments across the globe. The firm manages servers, applications, and connectivity in both public and private clouds, hybrid clouds, and on-premises data centers. The company, which has nearly 60 employees, is a Microsoft partner with a number of Azure-based solutions.
Describing the M&A deal, AccountabilIT CEO Chuck Vermillion said:
“We are thrilled to add ClearPointe’s leadership to our organization. Our strategy will continue to be the same; care about our customers' success as much as we care about our own company. We will lead this market, one customer at a time.”
M&A activity involving VARs, MSPs and CSPs has been particularly strong in 2018. Moreover, M&A deals involving software and IT services firms surged in Q1 2018 vs. the corresponding quarter in 2017, recent data shows.
Cloud Consulting M&A Deals: AWS and Azure Partner Buyouts
Buyouts involving MSPs focused on Microsoft Azure and Amazon Web Services (AWS) appear to be accelerating. Among the deals involving AWS and Azure partners that we've tracked:
- August 2018: Global systems integrator Insight Enterprises acquired Microsoft partner Cardinal Solutions for application development services across mobile, web, analytics cloud services & more.
- August 2018: Onica acquired DevOps specialist TriNimbus Technologies, uniting two AWS Premier Consulting Partners.
- July 2018: EACS acquired Sentronex, a Microsoft and Cisco Systems partner in London.
- July 2018: Hitachi Vantara acquired AWS and Azure partner REAN Cloud LLC.
- April 2018: HP Enterprise acquired RedPixie, a Microsoft Azure-focused public cloud consulting, application development and migration services provider.
- April 2018: Reliam acquired Stratalux, essentially merging two MSPs focused on AWS.
- March 2018: Deloitte acquired API Talent, and AWS partner.
- December 2017: BV Investment Partners acquired majority control of Apps Associates, a global IT services company that specializes in cloud database migrations and managed services wrapped around Amazon Web Services (AWS), Oracle, Salesforce and NetSuite deployments.
- July 2017: Ensono acquired Inframon for Azure expertise.
- February 2017: Blackstone acquired majority control of Cloudreach, an MSP and IT consulting firm that migrates customers to Amazon Web Services (AWS), Microsoft Azure and Salesforce.
Private Equity and MSPs
Private equity firms have been very active in the MSP sector, frequently buying "platform" MSPs and then tucking in smaller acquisitions along the way. Example deals include:
- Abry Partners owns NexusTek, which has made multiple acquisitions.
- Ardenton Capital Corp. invested in Achieve One, a fast-growing IT architecture and services organization.
- Alvarez & Marsal Capital acquired a majority stake in CNSI, which specializes in healthcare IT management technology.
- Evergreen Services Group, backed by Alpine Investors, has made five MSP investments this year.
- Madison Dearborn Partners (MDP) in April 2018 acquired Remote DBA Experts (RDX), an MSP that provides remote database administration (DBA) and cloud managed services. It sounds like additional tuck-in acquisitions are planned.
- Mayfair Private Equity in May 2018 acquired UK-based GCI, and plans to tuck multiple companies into the ICT provider.
- M/C Partners acquired Thrive Networks in late 2016 and has since tucked in multiple businesses.
- Sentinel Capital Partners acquired UBEO Business Services, a provider of printer, copier, and related office equipment.
Additional reporting and insights from Joe Panettieri.