NuMSP has acquired Network Medics, a managed services provider (MSP) that supports customers across Minneapolis-St. Paul, Minnesota, the companies confirmed today. Financial terms and headcount figures were not disclosed.
Network Medics' business launched in 2008, when friends Patrick Massey and James Matheson sketched their original business concept on a proverbial cocktail napkin. They shared the initial concept with friend Kevin Calgren, and the trio incorporated Network Medics as a business roughly a week later. The company moved from a basement operation to a Supercomputer Center in June of 2011, growing through virtualization services and other expansion opportunities along the way, according to the Network Medics website.
Market chatter suggests that NuMSP is potentially venture-backed and striving to build a national MSP -- a journey that multiple organizations are currently pursuing.
This is NuMSP's second acquisition in recent months. The company acquired Info-Link Technologies — a Columbus, Ohio-based network solutions provider, in August 2018. ChannelE2E is checking to see how NuMSP is funding the acquisitions, and whether each buyout will retain its brand, management teams and technology platforms.
NuMSP, Network Medics Executive Perspectives
In a prepared statement about the Network Medics deal, NuMSP CEO Jim Griffith said:
"By uniting our technology and capabilities with Network Medics, NuMSP can increase the options available to business owners in the Minneapolis area and beyond. As we scale our operation together, we will assist our clients to achieve even better business results and higher satisfaction than in the past."
Added James Matheson, president and co-owner of Network Medics:
"I am very proud of what we have been able to build at Network Medics over the last 10 years. We've gone from a couple of nerds in a basement to one of the most talented IT teams in the area. It has always been our goal to bring enterprise-grade solutions to growing businesses. By joining NuMSP's nationwide platform we create countless new opportunities to reach that end."
The overall M&A market for MSPs apparently remains strong. Private equity firms, regional MSPs and other suitors continue to ping ChannelE2E nearly daily about potential acquisition targets. MSP valuations have also risen this year -- with some sellers achieving 10X EBITDA valuations in M&A deals. Most deals, however, still remains closer to 5X to 7X EBITDA valuations, ChannelE2E believes.