Fully Managed Acquires Toronto MSP; Achieves $100M Revenue
Fully Managed, a Top 100 Vertical Market MSP, has acquired Quartet Services, a Toronto-based managed IT services provider (MSP) that has security expertise and SOC2 certification. Post-deal, Fully Managed now generates $100 million in annual revenues, the buyer says. Financial terms of the acquisition were not disclosed.
This is technology M&A deal number 469 that ChannelE2E has covered so far in 2021. See all technology M&A deals for 2021 and 2020 listed here.
Quartet’s service catalog spans IT planning, asset management services, managed security, hosted server infrastructure, 24×7 support, project management, telephony, and consulting, the buyer says.
Fully Managed: MSP Revenue Milestone, Business Focus
Fully Managed now has 415 employees and 3,000 customers across North America, the company says. The MSP has grown both organically and through acquisitions. Earlier deals include acquiring:
- Wappo Information Services;
- Kedsey Consulting;
- Lime Collar Group;
- TWT Group; and
- a 2018 merger with CareWorx.
Fully Managed has private equity backing, and also received $25 million in financing from Comerica Bank and BDC Capital in 2020. The MSP continues to focus on three lines of business, which are:
- Digital Business: managed IT and security for small and medium-sized businesses;
- Digital Enterprise: Elite ServiceNow practice for IT, customer, and employee workflow automation; and
- Digital Health: IT solutions for Senior Care communities.
Fully Managed Acquires Quartet Services: Executive Perspectives
In a prepared statement about the deal, Fully Managed CEO Mark Scott said:
“We are very happy to welcome the Quartet team to the Fully Managed family. As a top 5 managed IT provider in the Greater Toronto Area, Quartet gives us a stronger geographical presence in Canada’s largest business marketplace and deep expertise in security—expanding our ability to securely deliver vital managed services to our clients.”
Quartet President Rob Bracey, an Ingram Micro VentureTech (TrustX Alliance) veteran, joins Fully Managed as part of the deal. Bracey is now responsible for team and customer integration, Toronto office operations, and will contribute to corporate development, the buyer says.
In a prepared statement, Bracey said:
“We are thrilled to be joining forces with Fully Managed. In my June remarks after Quartet won the Canadian Business Excellence Award for the fourth year in a row, I talked about excellence being a journey. This is the next leg of our journey—one that will lead to greater things by combining our vast expertise and experience.”
Concluded Joel Abramson, chief strategy officer and head of corporate development at Fully Managed.
“Acquiring Quartet helps us further strengthen our position as a digital business transformation leader for companies across North America. Our aligned strategies and business priorities make this an ideal next step for both organizations that will help us continue to deliver more to our customers.”
Fully Managed: Positioned In Two Growth Markets
Overall, Fully Managed appears to be capitalizing on two growth markets.
First, the Elder Care Services Market will reach $2.1 billion by 2029 — which represents a compound annual growth rate (CAGR) of 6.3 percent from 2020, according to FutureWise market research. Senior care facilities are leaning on MSPs such as Fully Managed to remotely manage physical and virtual infrastructure, and therefore improve the overall senior care experience.
Second, ServiceNow is growing more than 20 percent annually. And that growth increasingly involves mid-market co-managed services that connect corporate IT departments with MSPs. Fully Managed appears well-positioned to capitalize on that trend. Even if ServiceNow’s subscription licensing experiences slowing growth, many corporate IT departments lack trained ServiceNow technicians. That reality has fueled strong M&A activity between ServiceNow MSPs.