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Investment Firm Flex Equity Acquires MSP, Seeks Tuck-In Deals

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Investment firm Flex Equity has acquired Logical Maintenance Solutions (LMS), an MSP that provides on-site maintenance and IT services throughout the United States and Canada. Financial terms of the deal were not disclosed.

This is technology M&A deal number 317 that ChannelE2E has covered so far in 2021.See all technology M&A deals for 2021 and 2020 listed here.

Flex Equity is not a traditional private equity firm. Instead, the organization operates as a multi-family office (MFO) and strategic investor. As the name suggests, an MFO typically supports multiple families to manage their entire wealth. MFO services typically include tax and estate planning, risk management, financial counsel, trusteeship, lifestyle management, investment advice, and philanthropic foundation management.

LMS Gains Technical Services Arm

Flex Equity's Ovation Technical Services will become the specialized services arm of LMS. Also, the buyer plans to acquire and tuck additional MSPs into LMS.

LMS, based in Irvine, California, averages 10 years of tenure per customer. Key partners include Dell Technologies, HP Inc. and Xerox, among others.

LMS works directly and indirectly with OEMs to remotely support end-user devices -- including point of sale (POS) hardware, servers, audio/video, security cameras, low-voltage cabling, networking, digital signage, VOIP and mobility.

Flex Equity Acquires LMS: More Details

Under terms of the deal, Stacey Powell will become CEO of LMS. Also, Flex Equity Managing Pertner Sameer Mittal is now chairman and president, LMS.

In a prepared statement about the deal, Mittal said:

"LMS brings a well-established team, service model and growth training that will help fuel our managed IT services expansion, and kick-off an exciting new chapter for Flex Equity. LMS deepens Flex Equity's maintenance and technology service capabilities, to help meet the rapidly changing, increasingly dispersed and complex managed IT service opportunity. There is extremely strong market demand for quality, flexible service providers, and we are delighted to welcome the full LMS team to continue our growth."

Added Powell:

"Combining LMS and Ovation marks an exciting new step for the leadership team. Utilizing the LMS variable workforce model to enhance our reach and ability to remain competitive for our clients, will be a huge differentiator in the value we have created for our clients. Working directly with Flex Equity enables us to expand career opportunities for our people, and continue to transform and scale our global managed IT service options to meet the continuously evolving needs of our customers."

Concluded Yogesh Kumar, managing partner, Flex Equity:

"We could not be more excited about the addition of LMS to the Flex Equity family office portfolio of companies. As the first addition of a managed IT service provider to our portfolio, LMS is well-positioned to be a key piece of the next chapter of our portfolio's growth and evolution. LMS's operational excellence and experience will be invaluable as we look to grow our portfolio in the coming years."

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.