GZ6G Technologies -- which develops IT solutions for smart cities, stadiums, universities, and other large venues -- is seeking to acquire MSPs that generate between $1 million to $10 million in annual revenues, the company disclosed today.
GZ6G, based in Las Vegas, has 15 employees listed on LinkedIn -- so we're not sure of the business's overall scale. When explaining the MSP acquisition strategy, GZ6G did not disclose target EBITDA profit margins, potential valuation multiples or revenue mix across product, consulting and monthly recurring revenue (MRR). Also, GZ6G did not disclose its total war chest, M&A funding sources, or the number of MSPs it hopes to acquire.
Still, the overarching goal is clear: The company wants to acquire MSPs that will "enhance and expand" the GZ Smart Networks division capabilities. From there, GZ6G will also seek to buy MSPs that align with divisions such as GZ Labs, GZ Media and GZ Data.
GZ6G Explains Ideal MSP Acquisition Targets
Although the MSP M&A market is crowded with buyers and investors, GZ6G Technologies isn't seeking to buy generic MSPs. Rather, target MSPs include wireless IT managed service companies, SaaS IoT (Internet of Things) software applications/devices, digital marketing and sponsor agencies, and data centers.
Moreover, target MSPs should have expertise in data analytics products, and smart technology-enabled offerings such as digital signage, IPTV, guest WiFi services, and data and content management systems.
In a prepared statement, GZ6G Technologies CEO Coleman Smith said:
“We are a forward-thinking company and seek to collaborate with other like-minded businesses that want to expand in the fast-growing technology solutions space. By working alongside MSPs and other smart-technology enabled companies, we can build our brand and influence, as we strive to become a leading provider of in-venue security and innovative technology for stadium and event venues across the nation. Acquiring companies that provide emerging technologies and have a similar growth mindset to GZ6G should help us solidify our suite of solutions and drive long-term growth.”
GZ Networks: Current IT Services Expertise
Existing GZ Networks services span:
- IT and wireless consulting;
- wireless survey and system installation;
- 24/7 cybersecurity monitoring and risk detection;
- data backup and recovery; and
- compliance and reporting.
The company also develops VenuTrax, a proprietary venue cloud data analytics and artificial intelligence platform that integrates with venue devices and gate sensors -- including WiFi or IPTV network technologies.