Private equity firm Craftsman Capital has acquired CMIT Solutions. the national MSP (managed services provider) franchising organization with 220 offices across 33 states. Financial terms were not disclosed.
The deal, according to Craftsman Capital, positions CMIT Solutions for:
- long-term franchise growth;
- enhanced operations support at the franchisor and franchisee levels; and
- new capacity to extend its category leadership with an elevated infrastructure.
Recent CMIT Solutions business milestones, according to the company, include:
- Opening 42 new franchise offices/territories across North America in 2018;
- adding 26 new franchisees to the CMIT Solutions franchise system;
- expanding to an overall 220 CMIT Solutions offices in 33 states across North America.
CMIT Solutions CEO Jeff Connally and all headquarters employees will remain in place at the company’s office in Austin, Texas, Craftsman Capital says. The private equity firm previously made three strategic investments in technology companies; ChannelE2E is researching the status of each of those deals.
CMIT Solutions, Craftsman Capital Executive Perspectives
In a prepared statement, Jeff Connally, president and CEO of CMIT Solutions, said:
“Craftsman Capital enters the picture at a time when we have significantly expanded the franchisee footprint over the last several years. We expect the growth to continue as a testament to our best-in-class processes and procedures that provide an optimal end user experience. Craftsman Capital enables the company to scale up in so many ways – franchise growth, technology partners, service deliverables, human capital, marketing and operations. Throughout the process of working with the Craftsman Capital team, it became clear beyond a doubt that this is the right fit for us as we move into our next phase of growth.”
Added Will Walters, co-founder and partner at Craftsman Capital:
“Early in our process we identified that CMIT Solutions has carved out its place as a market leader because of the strength of the business model, its technology alliance partners and the exceptional talent that exists at the home office and within the franchise system. We look for companies with a strong potential for growth. CMIT Solutions checked all of the boxes and we are very excited to work with CEO Jeff Connally and the company’s stakeholders to increase the resources needed to extend its leading position in each of the franchisee markets.”
This is the latest in a growing list of private equity firms acquiring MSPs and IT service providers. Track all private equity deals here.