DAS Health Ventures, an IT management company focused on the healthcare sector, has acquired Technology Seed for MSP (managed IT services provider) and cybersecurity services. Financial terms were not disclosed.
This is M&A deal 314 that ChannelE2E has covered so far in 2020. See the full M&A deal list here.
Technology Seed of Salem, New Hampshire, provides managed IT and cybersecurity services. The acquisition bolsters DAS’s position in the managed services sector while further developing its growth strategy, the buyer said.
DAS Health of Tampa, Florida, serves more than 1,500 clients, 3,000 clinicians, and 15,000 total users nationwide. The company has additional operations in Georgia, Illinois, New Jersey, North and South Carolina, Texas, and Wisconsin. Specifically, the Technology Seed deal enhances DAS’s presence in New England.
DAS Health revenues were $14.5 million as of 2017, according to the Inc. 5000 list and report of 2018. At the time, the company had a three-year growth rate of 180 percent. ChannelE2E could not find more recent revenue figures for the business.
The acquisition of Technology Seed is the largest of a dozen similar deals made by DAS over the past several years.
DAS Health Acquires Technology Seed: Executive Commentary
David Schlaifer, DAS Health president and CEO, commented:
“Technology Seed offers an exciting opportunity for DAS to strengthen and expand our managed IT services throughout the country, and specifically in New England. I am pleased to welcome Kurt Simione and his team to the DAS family. With this strong addition to our portfolio, we look forward to unlocking additional value for our clients.”
Kurt Simione, founder and president of Technology Seed, said:
“Joining DAS will allow us to expand and enhance our current services. Their commitment to client success, employee growth and company culture makes them an excellent fit for us and our clients.”
DAS Health Acquires Technology Seed: Cogent Assists the Deal
Cogent Growth Partners, a buy-side advisor that works closely with MSPs, MSSPs and IT service providers, assisted DAS in the acquisition.
Cogent has been involved in many M&A plays within the MSP sector over the years. According to ChannelE2E's previous coverage:
- Cogent client companies are “typically closely held or family-run businesses with revenues between $5 million and $100 million, most of which are in the $10 million to $40 million range, with some who are much larger subsidiaries of public companies or private equity firms,” the company says.
- Cogent only advises buy-side companies. In other words, Cogent avoids the temptation to play both sides of the table, and never advises sell-side companies.
- Cogent has actually declined consulting engagements that involved questionable M&A deals. If Cogent doesn’t see potential synergies in the deal, the consulting firm typically does not engage the opportunity.