New Jersey’s Domain Computer Services has merged with Maryland-based Tier One Technology Partners to form a national MSP platform. Terms of the deal were not disclosed, though the transaction was backed by Chicago-based private equity firm Frontenac.
This is M&A deal number 415 that ChannelE2E has covered so far in 2020. See the full M&A deal list here.
The two managed IT services providers both specialize in managing the cybersecurity and IT needs of professional services firms. Domain’s core business is in the legal and financial services arena, while Tier One works largely in the non-profit sector.
Domain Computer Services Merges With Tier One: MSP Deal Details
With the backing of Frontenac, the newly merged company is positioning itself as a premium national provider of managed IT services that will partner with other MSPs with similar values, the company said.
Domain Computer Services, founded in 1997, offers on-site and remote support packages to clients in the New Jersey, New York, and Philadelphia metro areas. Tier One has operated since 1998 and concentrates its service area on the Maryland and DC metro region.
The combined firm will be led by Rashaad Bajwa as CEO, Jim Kehres as managing director of the Maryland /DC market and Kris Laskarzewski as managing director of the NJ/NY/PA market, the company announced.
Industry veteran Mike Jenner will join the company’s board of directors. Jenner is CEO of ControlCase and is the former CEO of NexusTek. He will join Corey Sisler, CFO of Spectraseis and former CFO of NexusTek, the company said.
Domain and Tier One Merger: Executive Perspectives
In a prepared statement about the deal, Rashaad Bajwa, CEO of Domain, said:
"When we set the intention of building a national MSP platform, I knew that Dave and Jim at Tier One were one of the first conversations I was going to have. We've worked together closely for years as peers in ITNation Evolve; joining forces with them and Frontenac as our partner fulfills our vision of building a premium MSP platform focused on people, process and reputation."
Dave Shaffer, CEO of Tier One, added:
"After knowing Rashaad for years through our professional peer group, I knew and respected Domain as a leading MSP. When Rashaad approached me about bringing Domain and Tier One together, I quickly realized this could be a dream team. Together with Frontenac, they care about the things that matter most - our people, our clients and our reputation. This team makes a very attractive partner for best-in-class MSPs."
Joe Rondinelli, principal at Frontenac, said:
"Together with Mike and Corey, we were attracted to Domain and Tier One because of their people, culture, best-in-class operations and exceptional client base. We see substantial white space in the industry and are excited to support management by investing in strategic organic growth initiatives and acquiring other like-minded MSPs."