Mergers and Acquisitions, Mergers and Acquisitions, MSP, Content

SaalexIT Acquires Arctic MSP, Expands MSSP Services


Saalex Information Technology (SaalexIT) of Camarillo, California, has acquired Arctic MSP of Eugene, Oregon. Financial terms were not disclosed.

This is M&A deal number 218 that ChannelE2E has covered so far in 2020. See the complete M&A deal list here.  Also, this is Saalex's second acquisition of 2020. The earlier deal involved buying Valeo Networks of Scottsdale, Arizona.

SaalexIT positions itself as a blended MSSP (managed security services provider) and MSP that offers cybersecurity, cloud, and compliance resources. The company claims to rank among the top 10 percent of MSSPs in terms of revenue nationwide, though ChannelE2E has not independently confirmed that metric.

Arctic MSP will continue its operations and maintain its office in Eugene.

Saalex Acquires Arctic MSP: Executive Perspectives

Dan Herman, CEO, Arctic MSP
Dan Herman, CEO, Arctic MSP
Travis Mack, CEO,

In a prepared statement about the deal, Saalex President and CEO Travis Mack said:

"We continue to execute on our national strategy and working with great companies like Arctic MSP will help us achieve that goal. This acquisition grows and further enhances our capabilities in the areas of cybersecurity, cloud, network security, and compliance service offerings. With the acquisition of Arctic MSP, SaalexIT will be firmly rooted in the top 10% of MSSPs nationwide."

Added Dan Herman, CEO of Arctic MSP:

"One of the things I am looking forward to with Arctic joining Saalex is the ability to expand regionally beyond where we are now. With Saalex's financial and technical backing, Arctic will become an even stronger IT service provider and be better able to provide top quality IT services and security for our clients."

MSP and MSSP Mergers, Acquisitions and Valuations

MSP and MSSP valuations have held steady despite the coronavirus pandemic and its impact on IT project work, multiple sources tell ChannelE2E.

Still, M&A deals have seen a shift in deal terms -- with less money changing hands up-front, and more money tied to earn-out targets and ongoing business performance goals that can extend from one to three years post-deal, sources add.

For some clues about MSP and MSSP valuations, check out this article and related MSP Valuation Worksheet from Evergreen Services Group.

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.