Mergers and Acquisitions, Mergers and Acquisitions, Content, Vertical markets

AIS Acquires Microsoft Azure Government Cloud Partner Xgility

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AIS (Applied Information Sciences) has acquired Xgility, a Microsoft Gold Partner with Azure government cloud expertise. Financial terms of the deal were not disclosed.

This is technology M&A deal number 397 that ChannelE2E has covered so far in 2022.

Vertical Market Technology Services: AIS & Xgility Backgrounds

AIS, headquartered in Reston, Virginia, was founded in 1982. The technology consulting company works with federal government agencies to secure and scale their cloud environments. Additional vertical market focus areas include financial services and insurance, health and life sciences, and energy. Key partners include Microsoft, ServiceNow and Snowflake, among others -- as well as Alert Logic in the security market.

Xgility, based in Ashburn, Virginia, has 100 employees. Key areas of expertise include Microsoft Office 365, Sharepoint, Teams, Power Platform, Dynamics 365, and the Azure cloud infrastructure. The combined company will have at least 1,000 Microsoft-focused experts, the buyer said.

Related: Top 100 Vertical Market MSPs

AIS Acquires Xgility: Executive Perspectives

Larry Katzman, president and CEO, AIS
Larry Katzman, president and CEO, AIS

In a prepared statement about the deal, AIS CEO Larry Katzman commented:

"Bringing our teams together helps us build an even stronger community of passionate innovators to serve our customers and provide growth opportunities for our people. AIS has experienced substantial growth over the last five years, guided by our mission to be the premier Microsoft Azure cloud services partner for federal and commercial enterprises. Having known Chris for over a decade and seeing the organization he's built, I am excited for our teams to come together. I am confident our collective capabilities will continue to scale with the needs of our customers and the ever-evolving offerings of the Microsoft cloud marketplace."

Added Chris Hornbecker, CEO of Xgility:

"We didn't set out to sell Xgility, but after meeting with Larry, his team and their venture capital backers at Blue Delta, the opportunities created by joining AIS became very clear. This acquisition accelerates and multiplies our combined ability to achieve transformational results for our client's businesses and our teammates' careers.”