This is technology M&A deal number 388 that ChannelE2E has covered so far in 2021. See all technology M&A deals for 2021 and 2020 listed here.
The acquisition "enables Pax8 to expand to more than 40 countries across Europe and empowers its fast-growing partner base to accelerate digital transformation worldwide," the buyer said.
Resello, founded in 2013, has roughly 30 employees, according to the company's LinkedIn profile. The seller is is based in the Netherlands with a regional office in Germany.
Resello is an authorized Microsoft CSP Indirect Provider and cloud services distributor that supports partners in 15 languages, the buyer notes. Additional Resello software and technology partners -- beyond Microsoft 365, Windows Virtual Desktop and Azure -- include Acronis and Vade.
Pax8 Cloud Marketplace for MSPs: Business Background
Pax8, based in Colorado, runs a cloud-based marketplace that allows MSPs and channel partners to source various SaaS applications and business services.
Pax8 has been busy on the funding and M&A fronts. After raising $96 million in funding in January 2021, Pax8 acquired Microsoft Azure cloud partner Wirehive; announced a UK leadership team for expansion into Europe; and then acquired Sea-Level Operations for MSP education services in May 2021.
Pax8 was in rapid growth mode even ahead of the acquisitions. The company has ranked in the Inc. 5000 for three consecutive years — No. 68 in 2018, No. 60 in 2019, and No. 111 in 2020. The Inc. 5000 honor ranks Pax8 among the fastest-growing private companies in the United States -- though actual revenue dollar figures and profit/loss figures are undisclosed.
Pax8 and some rivals have evolved to compete in multiple markets. Rivals on some fronts include cloud distributors such as Ingram Micro and D&H Distributing; MSP marketplace operators such as ConnectWise; cloud solutions providers such as Sherweb; and potentially the recently launched Datto Commerce platform.
Pax8 Expands Cloud Marketplace Partner Reach
Describing the Resello acquisition and its context for partners, Pax8 CEO John Street said:
“Digital transformation has never been more urgent, and we are helping partners realize the benefits, value, and impact to businesses. The acquisition enables us to continue to expand our presence into international markets, add localized support, and accelerate and scale cloud adoption worldwide.”
Added Harald Nuij, managing director at Resello:
“As a fast-growing organization with a shared vision of accelerating cloud growth in the IT market, we are excited about the Pax8 acquisition. This alignment provides us with more resources to solve the challenges our partners face in the digital age so they can better automate, add value, and reach new growth trajectories. Together, we will be able to expand our partner base and have the technology and resources to meet the growing market demand for enterprise-grade cloud solutions.”