Private equity, Mergers and Acquisitions, Mergers and Acquisitions, MSP, Content

MSP M&A: Evergreen Services Group, NetGain Technologies Acquire 4EOS

Evergreen Services Group has acquired 4EOS and will tuck the MSP (managed IT services provider) into NetGain Technologies. Financial terms of the MSP acquisition were not disclosed.

This is technology M&A deal number 498 that ChannelE2E has covered so far in 2021. See all technology M&A deals for 2021 and 2020 listed here.

Evergreen Services Group, backed by private equity firm Alpine Investors, has made dozens of MSP acquisitions and investments since 2018. Instead of "flipping" the acquired businesses to turn a quick profit, Evergreen Services Group invests, holds and builds value for the long term. Evergreen now owns multiple "platform" MSPs -- which are regional (or national) IT service providers that are large enough to absorb tuck-in MSP, MSSP and IT consulting acquisitions.

NetGain Technologies Acquires 4EOS: MSP Company Backgrounds

NetGain Technologies is one of those platform MSPs. The 4EOS deal is the fifth acquisition that Evergreen Services Group and NetGain Technologies have completed together since 2019.

4EOS, founded by CEO Jeremy Holle in 2002, is headquartered in Fort Wayne, Indiana. The MSP's areas of expertise span network managed services, network design and installation, security, and data center services, the seller says. The 4EOS company portfolio includes SafeHouse Data Center and Midwest VOIP.

NetGain Technologies now scales to 10 locations in eight states across the Midwestern and Southeastern United States, the buyer says. Moreover, NetGain Technologies "continues to pursue acquisition opportunities across the region," the MSP adds.

NetGain Technologies Acquires 4EOS: MSP Executive Perspectives

Tim Burke, CEO, NetGain Technologies

In a prepared statement about the deal, NetGain Technologies CEO Tim Burke said:

“Jeremy and his team have built an incredible business in 4EOS with a focus on delivering exceptional service to their clients and developing the skills of their team. We look forward to supporting 4EOS’ continued growth and commitment to its customers, vendors, and team members. We have enjoyed working with Jeremy since our first interaction and we’re excited to expand on what the entire team has built in Fort Wayne.”

Added Jeremy Holle, CEO and founder of 4EOS:

“When the opportunity to collaborate presented itself, it was most important to partner with an organization who understood that our employees and clients were our first priority. From the beginning, I knew NetGain Technologies was the right organization for us. Moving forward, I’m excited to partner with the experts at NetGain, to continue bringing the best IT services and solutions and highest support levels to the businesses in Indiana.”

MSP Valuation Estimator: An Online Tool for MSP Owners

Meanwhile, Evergreen Services Group continues to educate the MSP market about M&A activity. The company’s MSP Valuations website, for instance, allows MSPs to measure their potential company valuation based on such variables as revenue, growth rate, EBITDA, capital expenditures, customer retention and customer concentration.

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.