Mergers and Acquisitions, Mergers and Acquisitions, MSP, Content

Converge Technology Solutions Acquires Cloud MSP ExactlyIT

Converge Technology Solutions has acquired international managed IT services provider, ExactlyIT. Financial terms of the deal were not disclosed.

This is technology M&A deal number 353 that ChannelE2E has covered so far in 2021. See all technology M&A deals for 2021 and 2020 listed here.

ExactlyIT, founded in 2019, is headquartered in North Carolina and has offices in Mexico. ExactlyIT, which has 88 employees listed on LinkedIn, offers managed IT services for:

  • Microsoft Azure Cloud Services;
  • Google Cloud Services;
  • Remote Managed Infrastructure Services;
  • Cybersecurity Services;
  • SAP Managed Services
  • ITSM (IT service management); and
  • End-User Client Services.

This is acquisition number 20 for Converge Technology Solutions since October 2017.

Converge Technology Solutions Acquires ExactlyIT: Executive Perspectives

In a prepared statement about this latest deal, ExactlyIT CEO Michael Heuberger said:

"When we launched our company, we used the first 12 months as an incubation period to be very disruptive in order to develop a new portfolio of managed IT services based on the needs of today's progressive CIO. Scalability, governance, transparency, and security were our main ingredients, and I think we have succeeded, given our growth in such a short period of time. Now, we are excited to be part of the Converge family and look forward to helping expand and grow the Company's next-generation managed IT services."

Added Shaun Maine, CEO of Converge:

"We are delighted to welcome Co-Founders Michael HeubergerKevin DiazMohammad Ahmmad, and the entire ExactlyIT organization into the Converge family. Converge's partnership with ExactlyIT was introduced earlier this year at our National Sales Meeting, solidifying a Managed Services alliance that began in September 2020. The addition of ExactlyIT will play an important role in our global expansion of Managed and Cloud Services and our already existing relationship will accelerate the roll-out of services to our clients. We welcome ExactlyIT's extensive Managed and Cloud Services experience, along with the additions they will bring to our Analytics and Cybersecurity teams."

Converge Technology Solutions: Business Performance

For the three months ended March 31, 2021, Converge Technology Solutions said:

  • Revenue was $310.2 million, up from $241.5 million in the year-earlier quarter.
  • Net income was $3.7 million, far better than a $1.4 million net loss in the year-earlier quarter.
  • Adjusted EBITDA was $18.8 million, up from $11.04 million in the year-earlier quarter.

Still, ChannelE2E does not know what percentage of the revenue growth involved organic expansion vs. revenue from recent acquisitions.

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.