This is technology M&A deal number 197 that ChannelE2E has covered so far in 2022. See more than 1,000 technology M&A deals for 2022, 2021 and 2020 listed here.
Founded in 1997, CCO is an IT support firm based in Redlands, California. The company has 14 employees, according to LinkedIn. CEO Brad McDermith and the CCO team will remain in their current roles, and the acquired business will continue to operate independently as a standalone brand with added support from Executech, according to the buyer.
Executech Acquires CCO: Executive Commentary
In a prepared statement about the deal, Executech CEO DJ Dorff said:
“I am happy to welcome the California Computer Options team into the Executech family. The team at CCO is as dependable as they are friendly. Their technical expertise combined with their focus on high-quality professional services mirrors Executech’s mission and core values. We look forward to helping Brad and his team to grow in the years to come.”
Brad McDermith, CEO, California Computer Options Inc, added:
“We are excited to join the Executech group and collaborate with their team. Through this partnership, we can provide more robust cybersecurity tools, cloud options, and broader geographical service to our local clients.”
Executech’s Growth Trajectory
This acquisition is the sixth major acquisition by Executech, which was founded in 1999. The company has been backed by Evergreen Services Group for the past 12 months. Executech and Evergreen say they will continue to pursue acquisition opportunities.
Past deals have included:
- Canadian IT support provider Dyrand Systems.
- Max Technology, an IT services provider in Carbon County, Utah.
- Pact-One, a vertical market IT service provider focused on the dental practice industry from Las Vegas, Nevada.
- DSA Technologies, a California-based full-service IT provider. Financial terms were not disclosed.
- Seattle, Washington’s Z7 Networks
- Spokane, Washington’s HiTechnique.
Executech Parent Evergreen Services Group: The MSP Investment Strategy
Evergreen Services Group, the parent of Executech, organizes various MSP investments into regional businesses groups. The MSP groupings include:
Evergreen, backed by private equity firm Alpine Investors, has completed 43 investments in MSPs across North America since its founding in 2017. Extending beyond traditional MSPs in the SMB sector, Evergreen has also acquired MSPs focused on managed security services, managed SAP cloud applications, and financial services, among other areas of expertise.
It’s a safe bet more acquisitions are coming. The evidence: Alpine Investors raised $2.25 billion in 2021, and a portion of that money is earmarked for more MSP investments and acquisitions by Evergreen, ChannelE2E confirmed at the time of the report.
Additional insights from Joe Panettieri.