Analysts See Strategic Value in Blue Mantis’ Coreio Acquisition

Earlier this week, MSP Blue Mantis announced the acquisition of Coreio, a Canadian-based boutique managed services company that specializes in providing ServiceNow consulting and infrastructure services to customers throughout North America.

Blue Mantis says the acquisition enabled it to accelerate its growth in expanding ServiceNow services in the midmarket segment, while also working to build its business portfolio and opportunities in Canada.

Coreio, which was founded in 1981, also provides a wide range of other IT services across the U.S. and Canada, including IT asset lifecycle management, cybersecurity and service desk operations.

The Coreio purchase, which is expected to close in Q3 2025, marks the fifth acquisition so far in 2025 after three others were unveiled in March by the New Hampshire-based Blue Mantis.

“Blue Mantis’ acquisition of Coreio comes at a pivotal moment in our growth,” Joshua Dinneen, Blue Mantis’ chief executive officer, told ChannelE2E. “Over the past several years, we have seen demand accelerate for managed services in cybersecurity, cloud modernization, and ServiceNow. At the same time, customers have been asking us for both deeper expertise and more flexible delivery models. With Coreio, we are able to meet that demand head-on by expanding into the Canadian market, strengthening our ServiceNow practice, and adding nearshore capabilities that complement our existing onshore and offshore models.”

Dinneen said this means faster access to specialized expertise for customers, as well as more choices for them in how services are delivered. The acquisition also provides a smoother path for customers to scale their digital transformation initiatives by bringing in a trusted service provider.

“Coreio’s strong reputation and proven team in Canada give us immediate market credibility and ensure a seamless experience for their existing customers, who will now have access to Blue Mantis’ broader portfolio, including advanced cybersecurity and AI enablement,” said Dinneen.

For Blue Mantis, Coreio’s ServiceNow expertise brings new opportunities and "deepens our ability to co-sell and co-deliver solutions that customers are asking for today,” he said. “And with recurring services now making up more than 60% of our business, we are aligning incentives and enablement around growing those managed services in ways that drive more margin and value for our channel ecosystem. The blended shore/nearshore/offshore delivery approach also gives partners a differentiated story in competitive midmarket deals.”

A Sensible Business Acquisition: Analysts

Two analysts who spoke with ChannelE2E said they see clear value in Blue Mantis’ approach.

"Across the board, we are seeing an increased interest by B2B tech vendors in the midmarket customer segment and this news tracks with that trend,” said Shelly Kramer, principal analyst with Kramer&Co. "The Coreio acquisition nicely positions Blue Mantis to focus on and capitalize on ServiceNow's rapidly growing mid-market customer base, leveraging Coreio's consulting expertise. Meanwhile, Blue Mantis' broad portfolio offerings will undoubtedly be attractive to Coreio's customer base.”

Kramer said she expects to see a continuing consolidation trend at a rapid pace as companies quickly find that they are better together. "Stronger portfolio offerings lead to more rapid revenue growth opportunities,” she said. "This is good for the MSP community and its customers.”

Rob Enderle, principal analyst with Enderle Group, called the acquisition a solid move with strong benefits to both firms and their customers.

"Blue Mantis’ customers get better high value specialized expertise in cloud, cybersecurity, and networking, better integrated solutions for digital transformation, and a more comprehensive single strategic partner for a more holistic relationship,” he said. “Coreio’s customers also get a far broader suite of potential solutions with Blue Mantis’ stronger service portfolio, greater resources and scale, and stronger financial stability.”

Enderle said he expects that the deal will be beneficial for MSPs' customer bases and should lead to improved customer satisfaction, acquisition, and retention for Blue Mantis.

The acquisition will also likely help both companies during recent unsettling economic times, according to Enderle. “The administration is putting a lot of stress on the general business environment making combining companies, particularly smaller firms with limited resources, more beneficial for weathering the related storms,” he said.