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Big MSP Merger: NexusTek Acquires Cal Net Technology

Cal Net Technology Group has merged into NexusTek, creating one of the largest nationwide MSPs addressing SMB customers across the United States, according to an email from one of the companies to customers.

Details about the Cal Net-NexusTek deal also surfaced in this video:

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Cal Net: Seeking A Buyer?

Rumors about Cal Net being up for sale had surfaced in recent weeks. Cal Net had been owned by Boathouse Capital and Olympic Valley Capital. Also, Cal Net leveraged a credit facility from Monroe Capital to acquired inhouse IT in 2016. We're checking to see if the investment firms retain stakes in Cal Net, or if they exited the MSP as part of the NexusTek deal.

This is NexusTek's sixth M&A deal in four years. The company earlier this month acquired the cloud hosting, infrastructure, and managed service business units of Orange County’s Zumasys.

And in May of this year, the company merged with Breakthrough Technology Group (BTG). The merger was facilitated by Abry Partners, which has backed NexusTek since it made a sizable investment  in December 2017. The firm bought BTG just prior to the merger.

Cal Net-NexusTek Merger Details

In a Cal Net email to customers, the MSP stated:

"We’re reaching out today to share some exciting news! Cal Net Technology Group has merged into NexusTek, a leading Managed IT, Cloud, and Cyber Security Services firm. 

NexusTek is based out of Denver, CO with offices across the country.  Their award-winning service model includes a 24/7 staffed NOC, SSAE 16 certified services and a focus on delivering top-tier client service. This means you don’t get a call back if you contact us in the middle of the night – you get an engineer directly on the phone!

James Hwang, CEO of Cal Net, will move into an executive role with NexusTek. Along with the senior management, James will maintain his dedication to leading a truly outstanding, client-focused business. We would also like to assure you that the same highly qualified team you’ve come to know will continue serving your needs as usual."

Cal Net: More Thoughts for Customers

Cal Net’s decision to partner with NexusTek is simple, the email continued:

"Adding our range of services to another well-established IT company will result in better service for you, our client, including:

  • Higher availability (more engineers to respond to your call)

  • Multiple Network Operations Centers (NOC), staffed 24/7/365, for greater response time and overall coverage with a larger service staff

  • Cyber Security Services & Assessments

  • Enhanced application and Infrastructure consulting to help businesses deal with the most complex problems and improve productivity

  • Additional Managed Service offerings that include extensive Cloud Services

  • Best-in-class Cloud Hosting and Migration Services

  • Multiple Data Centers for private, shared and hybrid cloud solutions

  • Dynamics365 CRM & ERP Consulting

  • HIPAA Compliance

  • Voice over IP (VoIP) Services

  • Experienced leadership when dealing with tough technical issues

  • Microsoft Certified Gold Partner

As a valued client, we would like to thank you for the trust you’ve placed in us over the years. We look forward to serving you in a much bigger and better way with NexusTek’s amazing team!

Please feel free to contact us with your questions or concerns.

Thank you,

The NexusTek/Cal Net Team"

ChannelE2E has reached out to both companies for more details about the deal.

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.