IT distribution, Mergers and Acquisitions, Mergers and Acquisitions, MSP, Content

MSP Acquisition: NWO IT Services Buys PenTech Computer Company

NWO IT Services, a managed IT services provider from St. Louis, has acquired local neighbor PenTech Computer Company. Financial terms of the deal were not disclosed.

Details about the deal are scant, but here's what we've heard: NWO IT Services, founded in 2008, says the deal improves its ability to provide Saint Louis area customers with reliable managed IT services.

PenTech Computer Company, founded in 1984, offers IT support, installation, sales & leasing, computer maintenance, printer repair, and preventative maintenance.

Headcount figures for each company were not disclosed.

MSP Mergers and Acquisitions: Company Valuations

M&A activity involving MSPs and IT solutions providers remains strong, though company valuations can be difficult to pin down.

In some rare instances, we’ve seen some MSP valuations reach 8X to 10X annual EBITDA. The more reasonable valuation ChannelE2E has heard is 6.5X annual EBITDA — with many deals ranging from 4X (yes, that low) to 8X annual EBITDA, based on a range of factors. Here are deeper details about MSP valuations and associated factors.