Managed services provider Magna5, backed by NewSpring Capital, has acquired TCG Network Services (TCG), a Boston, Massachusetts-based managed IT and cybersecurity services provider. Financial terms of the deal were not disclosed.
This is technology M&A deal number 231 that ChannelE2E has covered so far in 2022. See more than 1,000 technology M&A deals involving MSPs, MSSPs & IT service providers listed here.
Magna5 Acquires TCG Network Services
Magna5 is a managed IT, cybersecurity and cloud-based services and a NewSpring Holdings platform company based in Pittsburgh, Pennsylvania. In addition to managed IT services, cybersecurity and private and public cloud hosting, the firm provides backup and disaster recovery to mid-market and enterprise customers, including within the education, healthcare, government, financial services, manufacturing and other verticals.
TCG was founded in 1987 and is based in Boston, Massachusetts with an office in Natick, Massachusetts. The firm provides managed IT, cloud computing, cybersecurity, professional and strategic IT services to clients in the northeast United States.
This acquisition further strengthens Magna5’s cybersecurity, data recovery and cloud services practice in the lower middle market. This is Magna5's second acquisition in the past 12 months. Magna5 acquired New York-based SpinnerTech in May 2021 and is pursuing additional acquisition opportunities to enhance its capabilities and expand its reach, the company said.
Robert Farina, CEO of Magna5, commented on the news:
“Our mission at Magna5 is to provide superior service for our customers by combining high-touch local service teams while leveraging the benefits of having access to a broader portfolio of capabilities. We were immediately drawn to TCG’s impressive track record and the company’s customer-first approach to technology management, which aligns well with our core values and culture at Magna5.”
Frank McDonough, president and co-founder, TCG, added:
“We’re extremely proud of this new partnership. We have been thoroughly impressed by the process and look forward to supporting Magna5 and NewSpring Holdings in their rapid expansion. This move enhances our ability to offer best-of-breed technology services. That includes real-time cybersecurity protection, data backup and recovery, centralized network monitoring, cloud hosting, and 24/7 help desk support. Our customers will benefit by continuing to work with their regional Boston support team who now have access to larger market resources.”
About the Transaction
The transaction was facilitated by ITX, a global leader in smaller mid-market mergers and acquisitions focusing on IT services businesses, MSSPs, MSPs, Microsoft, and Oracle channel partners, according to a statement from Magna5. Robert W. Chmielinski served as legal counsel to TCG Network Services. Blank Rome LLP served as counsel to Magna5.