Upstack, backed by private equity firm Berkshire Partners, has acquired technology consulting firm teXium. Financial terms of the deal were not disclosed.
This is technology M&A deal number 111 that ChannelE2E has covered so far in 2022. See more than 1,000 technology M&A deals for 2022, 2021 and 2020 listed here.
Headquartered in Stuart, Florida, teXium was founded in 2009. The company primarily serves medium-to-large enterprises in 29 countries. Originally, teXium was founded to offer provider-agnostic, "best-fit" communications services tailored to customer needs.
As part of the deal, teXium president and CEO Michael Scharf and chief revenue officer Michael Martin will join Upstack as partners and managing directors. Six additional teXium team members will also join the company to support customers with voice and data networking, VoIP communications, security and cloud computing solutions through the Upstack platform, the companies announced.
The acquisition is part of Upstack’s strategy to accelerate the growth of its end-to-end IT source/deploy/manage platform. Upstack is backed by private equity firm Berkshire Partners, which invested $50 million into the company’s strategy. Since then, Upstack secured an additional $100 million in financing from MidCap Financial and Morgan Stanley Private Credit to help scale its platform through technology expansion and strategic partner investments.
Upstack Acquires teXium: “An Exciting Vision For The Future”
Michael Scharf, president and CEO, teXium, commented:
"Succeeding in this business is all about relationships, and that is exactly why we were drawn to becoming part of the Upstack family. Upstack sees the value in customer relationships we've built, and our team is looking forward to continuing to nurture those relationships under the Upstack umbrella. I'm excited for our customers to continue to receive the best of the best in solutions and service, now with an augmented back office. Upstack has an exciting vision for the future, and we are glad to be along on the journey."
Michael Martin, chief revenue officer, teXium, added:
"We wanted to offer our customers the best product at the best price and also install it to ensure it works. We became advocates for our customers with service providers."
Christopher Trapp, CEO, Upstack, said:
"We're proud to bring aboard the teXium team. The experience the teXium team has gained over the last decade serving more than 3,000 customer locations around the world will be a tremendous asset to the Upstack team."
Upstack’s Growth Trajectory
Since its founding in 2017, Upstack has acquired 13 independent agencies. The company says it will continue seeking investments in category-leading telecom, cloud and connectivity firms. Past deals have included:
- October 2021: Global Communications Networks (GCN).
- September 2021: Telecommunications consulting firm Legacy Solutions and Open Communications LLC, and an IT consulting firm.
- September 2021: Network and IT consulting firm idea! Communications Group and MOC4, a technology advisory firm.
- August 2021: CloudAdvise, a technology infrastructure advisory firm.
- July 2021: LanYap Networks, a strategic telecom and cloud solutions provider for medium and large businesses.
- July 2021: Consulting firm DataCenterAndColocation.com
- June 2021: Global technology infrastructure solutions firm Cloudwirx Inc
- May 2021: Telecommunications consulting firm M2 Enterprise Group
- April 2021: Global technology and telecommunications consulting firm Cloudnexion
