Managed IT, cloud and cybersecurity services provider Magna5, backed by NewSpring Holdings, has acquired the U.S. assets of Apogee IT Services, a managed IT and cybersecurity services provider. Financial terms of the deal were not disclosed.
This is technology M&A deal number 37 that ChannelE2E has covered so far in 2023. See more than 2,000 technology M&A deals involving MSPs, MSSPs & IT service providers listed here.
Magna5 Acquires Apogee for Boston, Pittsburgh Expansion
Magna5, founded in 2017, is based in Pittsburgh, Pennsylvania. The company has 154 employees listed on LinkedIn. Magna5’s areas of expertise include cloud, security, managed services, cloud services, cybersecurity, data backup, disaster recovery, network monitoring, monitoring and management, SD-WAN, managed detection and response, help desk, vulnerability scans, managed IT services and managed service provider.
Apogee, founded in 1990, is based in Sewickley, Pennsylvania. The company has 56 employees listed on LinkedIn. Apogee’s areas of expertise include IT security, IT help desk and data backup and recovery services.
This acquisition provides Magna5 additional scale in the Pittsburgh and Boston markets.
Robert Farina, CEO of Magna5, commented on the news:
"The demand for managed IT services continues to grow rapidly and adding Apogee's skilled team will enhance our combined services delivery experience for customers in two of our core regions. We're thrilled to welcome Apogee's US customers and look forward to working with them to provide an even more robust set of offerings as their trusted, outsourced IT services partner."
Paul Cronin, CEO of Apogee, added:
"We were immediately drawn to Magna5's mission to provide a holistic, client-centric approach and technical methodology to managed IT services. Our customers will immensely benefit through this acquisition by gaining immediate access to Magna5's larger, more comprehensive platform and best-of-breed managed IT solution sets including network cybersecurity tools, backup and disaster recovery maintenance and IT monitoring."
Magna5's Acquisitions and Growth
Magna5's revenue more than doubled in 2022 from the previous year and organic sales grew over 30%. Magna5 was named by MSSP Alert as a top 250 MSSP.
In all, this is the fifth managed services acquisition for Magna5 and the third over the past year. Previous deals included:
- September 2022: Interphase Systems, a Philadelphia-based cybersecurity, data protection, financial services and life sciences managed services provider.
- May 2022: StableNet, a North Carolina-based managed IT service provider.
- March 2022: TCG Network Services (TCG), a Boston, Massachusetts-based managed IT and cybersecurity services provider.
- May 2021: New York-based SpinnerTech.
- November 2017: NetServe365, a Pittsburgh, Pennsylvania-based managed services provider
In November 2021, Magna5 sold its telco business to International Telecom (ITL) to focus on pure-play MSP activities and managed services acquisitions.