It was another busy week on the merger and acquisition (M&A) front for VARs, managed services providers (MSPs) and cloud services providers (CSPs). At least four deals -- stretching from the U.S. East Coast, to the Midwest and on to the West Coast -- were officially confirmed, with several more brewing ahead of the new year.
Among this week's deals...
1. Fusion Acquires Fidelity Voice and Data
This is the Midwest M&A deal we spotted. Cloud Services provider Fusion has acquired Fidelity Voice and Data -- which offers cloud voice, security and other IT services to roughly 2,000 SMBs across the Midwest. The $30 million deal apparently values Fidelity at about 1.67 times revenues. (Crain's reported Fidelity's revenues at $18 million... so we did the quick valuation math.)
Fusion generates about $115 million in revenue per year, with about $18 million coming from Fidelity, according to Crain's. The company has more than 13,000 customers, including about 2,000 from Fidelity. Fusion has acquired about five companies in recent years, according to multiple reports. Fidelity’s primary owners, Robert and Mitch Marks, will no longer be involved with the business, according to Crain's.
2. Evolve IP Acquires A.P.T. Consulting
This is the East Coast deal we spotted. Evolve IP purchased A.P.T. Consulting, a managed IT service provider focused on the veterinary medicine and pharmaceuticals verticals. Financial terms were not disclosed.
Evolve IP (Wayne, Pa.) is a master cloud services provider (CSP) of sorts -- offering all sorts of cloud services to end-customers while also promoting a partner program to VARs and MSPs.
Evolve IP apparently has made at least seven acquisitions in recent years.
3. Business Complete Solutions (BCS) Acquires StarPoint Advantage
I'm always skeptical when pundits describe convergence between office equipment (printers, copiers) and managed services. But this deal made me eat some crow.
Business Complete Solutions (BCS) is an office equipment reseller in the San Diego area. Neighboring StarPoint Advantage is an MSP. The duo confirmed BCS's buyout of StarPoint this week. ChannelE2E has reached out to both firms for additional comment.
4. Emtec Acquires Summit Technology
Emtec has more than 1,000 employees and is making a serious run at the Oracle consulting and cloud markets -- focusing on such verticals as health care, utilities and manufacturing. Emtec has made three acquisitions this year.
Emtec President Sunil Misra and Summit CEO Carl Hunt described their business combination to ChannelE2E earlier this week. We'll publish that interview the week of Dec. 14, 2015.
Surprise: Deal Number Five
IT Channel Acquisitions Continue
ChannelE2E is aware of at least two more potential deals that could be finalized before December 31, 2015. The flurry of activity typically involves channel partners that are seeking specific intellectual property, talent, geographic footprint or a book of business (i.e., recurring revenues from a well-defined set of customers.
Additional VAR, MSP and CSP deals in recent weeks have included:
- Cloud data centers: Immedion acquired Appica
- New England IT services: Internet & Telephone acquired Jenaly
- Hybrid cloud: Presidio acquired Sequoia Worldwide
- Multiple Microsoft Dynamics VARs and IT consulting firms have been acquired in 2015.
- Private equity firms have been buying up IT service providers and VARs.
- And emerging cloud service providers have acquired MSPs for regional and technical reach.
To track buyouts as they happen, bookmark ChannelE2E's M&A and funding coverage.