Bulletproof Infotech has acquired a majority position in Cisco Systems partner Concordis Solutions Inc., the two Calgary-based companies confirmed today. Financial terms and resulting ownership percentages were not disclosed.
Bulletproof Infotech specializes in fixed-fee managed IT services for small and midsize companies. The MSP, which has roots that stretch back 30 years, has maintained double-digit growth rates over the last decade, Bulletproof indicates.
Concordis Solutions, founded in 2012, specializes in Cisco networks and unified communications. The company's core expertise also includes hosted phones, video and Web conferencing, and professional services.
Talent Updates
As part of the deal, Concordis President Devin Chamberlain shifts to VP of service delivery for both companies. Also, Concordis Director of Corporate Relations Barb Plicka is now VP of partner relations for both companies.
Both companies will maintain their existing customer and vendor relationships, though the cross-company synergies will improve customer efficiencies, the firms claim.
In a prepared statement, Bulletproof Infotech CEO Andrew Lozier said:
“We are very excited about this new partnership with Concordis Solutions and look forward to providing our clients a larger portfolio of services. The opportunity to bring collaboration solutions such as video and web conferencing, Cisco product line, and unified communications to our clients will provide value in streamlining their internal operations."
Added Chamberlain:
“This partnership is a great start to 2018 for Concordis. Bulletproof has a longstanding history of providing exceptional service in information technology. We look forward to continuing our support of existing clientele and partners, as well as expanding into new opportunities.”
Side note: Bulletproof Infotech is not to be confused with Bulletproof Solutions, another MSP that has acquired multiple companies in recent years.
MSP Mergers, Acquisitions, Valuations
Overall, M&A activity in the MSP and IT consulting sector has been strong so far this year. Valuations for most deals have ranged from 5X to 7X EBITDA, depending on MSP size, according to ChannelE2E's background reporting. Some larger MSPs have fetched 8X EBITDA based on their ability to be a platform provider for private equity firms. At the very high end of the market, MSPs with their own intellectual property have occasionally fetched 10X EBITDA valuations -- though that scenario is extremely rare.
