This is M&A Deal Number 30 that ChannelE2E has covered in 2020. See the complete M&A deal list here.
Calligo is based in the Bailiwick of Jersey -- an island between the UK and France, and part of the United Kingdom. The MSP has multiple data center footprints worldwide. DC Networks is based in Dublin, Ireland. The deal strengthens Calligo’s European presence in Ireland, along with its ability to deliver data optimization and privacy services across Europe and around the world, the company said.
Calligo Acquisition Experience
This is Calligo’s sixth acquisition in three years. The company acquired Brampton, Ontario’s Connected Technologies in April 2019. It also acquired two other Canadian companies and one in Guernsey.
Founded in 2005, DC Network’s services and skillsets complement Calligo’s existing portfolio of public and hybrid cloud, It managed services, and data analytics and artificial intelligence services, the company said.
Julian Box, founder and CEO of Calligo, commented on the deal:
“Ireland is a rapidly-growing market, but particularly in its appetite for innovative technology. It is populated by a high proportion of ambitious, data-driven businesses eager to explore how they can make the fullest use of their data and make it work harder for them. Ireland was clearly the logical next step for Calligo’s international expansion. However, Ireland is also a strategic target. Adding a presence here, alongside our established locations in the UK and Europe, bolsters our ability to provide local, European and international businesses with a full suite of data-centric managed services that satisfy all requirements in data residency, data privacy and data ethics.”
Box called DC Networks “an easy choice” or Calligo’s first move into Ireland. He added that DC Networks’ existing team will be added to Calligo’s.
Robert Doyle, director of DC Networks, also commented:
“Synergy is an overused term in these situations, but here it is remarkably apt. The similarities in our service lines, customer focus and underlying missions were striking. We have taken pride in developing strong relationships with our clients, many of whom have been with us for many years, and we know their businesses, needs and data challenges inside out. This acquisition will be an excellent result for our new and existing clients, as the wider portfolio of data services that will be made available to them, including data privacy, automation and artificial intelligence, are exactly what they and businesses across Ireland are in need of.”
Private Equity Funds MSP and CSP Mergers, Acquisitions
Calligo is backed by Investcorp,, an investment firm that pumped $20 million into the cloud solutions provider (CSP) in 2016.
Fast forward to present day, and private equity firms remain active in the MSP sector. Buyers and investors in recent days include Abry Partners, Accel-KKR, Frontenac, Insight Partners, M/C Partners, One Equity, and Trinity Hunt Partners.
More M&A deals and private equity investments are a safe bet. Indeed, private equity investors are sitting on a record $1.5 trillion in cash, according to new data from Preqin. Yes, that’s trillion — with a T. That is the highest on record and more than double what it was five years ago, CNBC reports. Amid that reality, private equity firms are scrambling to make investments.