Top 100 Technology Mergers and Acquisitions of 2017: MSPs, CSPs, IT Consulting Firms and More

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Source: ChannelE2E Top 100 Mergers & Acquisitions of 2017.

ChannelE2E tracked more than 150 technology mergers and acquisitions in 2017. Our focus zeroed in on MSPs and CSPs (managed and cloud services providers), IT consulting firms, IT services providers, data centers, private equity firms and other key players in the IT Channel. We’ve compiled a list of the Top 100 Mergers and Acquisitions to help you see deal activity — the buyers, the sellers and the focus areas — for 2017.

Who Are the Buyers?: As the pie chart shows, buyers come from a range of backgrounds. No doubt, MSPs, IT service providers and CSPs are increasingly active in the market. But don’t overlook private equity firms — which have been making local, regional, national and even global acquisitions. Sometimes the PE activity is overlooked because an M&A deal involves an MSP buyer that’s quietly backed by PE dollars.

Source: ChannelE2E Top 100 Mergers & Acquisitions of 2017

Who Are the Sellers?: Buyers are seeking sellers from a backgrounds. In addition to the usual MSP and IT service provider targets, we’re seeing buyers increasingly scoop up partners that have ISV-centric cloud practices — focusing on such platforms as ServiceNow, Microsoft Dynamics, Salesforce, WorkDay, Oracle, SAP and other popular application suites. We’re also seeing security-centric M&A deals — with global IT consulting firms tucking security-centric businesses into their organizations.

M&A Valuations: In terms of valuations, we don’t benchmark that information. However, the folks at Service Leadership Inc. — the leading benchmarking organization for IT service providers — compile, analyze and release M&A valuation information each year. Check in with that organization directly for details.

The Entire Top 100 Technology Merger and Acquisitions List for 2017: You can scroll through the entire Top 100 deal list below. You’ll notice that they’re organized alphabetically — according to the buyer’s name.


Top 100 Technology Mergers and Acquisitions of 2017: The List

1. Buyer: AASKI Buyer Focus: Professional Services

  • Seller: ConnectSolutions
  • Seller Focus: ISV Expert
  • Summary: ConnectSolutions is a cloud-centric MSP focused on Adobe Connect. The acquired assets will be rebranded as CoSo Cloud LLC, an AASKI company.
  • News Analysis

2. Buyer: ABRY Partners Buyer Focus: Private Equity

  • Seller: Breakthrough Technology Group
  • Seller Focus: CSP
  • Summary: Private equity firm ABRY Partners acquired Breakthrough Technology Group (BTG), a managed private cloud service provider focused on supporting enterprise workloads and IT services. ABRY’s investment will be used to accelerate growth, both organically and through strategic acquisitions, the companies said.
  • News Analysis

3. Buyer: Advanced Technology Services Buyer Focus: IT Services

  • Seller: Innovative Technology Solutions
  • Seller Focus: MSP
  • Summary: ATS is a global manufacturing services and IT solutions provider operating since 1985; the company has 400 employees across the U.S., U.K., and Mexico. By contrast, ITS offers managed services and technology consulting to customers in New York, New Jersey and Florida.
  • News Analysis

4. Buyer: Ameri100 Buyer Focus: IT Services

  • Seller: ATCG
  • Seller Focus: ISV Expert
  • Summary: Ameri100 acquired ATCG Solutions, a system integration firm specializing in SAP cloud, HANA, Hybris, SuccessFactors and business intelligence.
  • News Analysis

5. Buyer: Anexio Buyer Focus: CSP

  • Seller: Net Data Centers
  • Seller Focus: CSP
  • Summary: Net Data Centers’ assets focus heavily on Los Angeles-based cloud and data center solutions.The deal is immediately accretive and cash flow positive for Anexio’s bottom line.
  • News Analysis

6. Buyer: Apax Partners Buyer Focus: Private Equity

  • Seller: ThoughtWorks
  • Seller Focus: IT Services
  • Summary: ThoughtWorks, launched in 1993, specializes in agile software development. The company’s key focus areas include digital strategy & service design; experience design; lean product development; portfolio design & management; and customer research & testing.
  • News Analysis

7. Buyer: Atos Buyer Focus: Global IT Services

  • Seller: Multiple Deals
  • Seller Focus: Vertical Markets
  • Summary: Atos acquired three healthcare IT consulting firms in the United States, and the company’s annual revenues in that vertical market will now exceed more than 1 billion euros (about US$1.17 billion). The three acquisitions — involving Pursuit Healthcare Advisors, Conduent’s Healthcare Provider Consulting and Conduent’s Breakaway Group — span 400 consultants. They join a team that includes talent from the Anthelio Healthcare Solutions buyout in 2016.
  • News Analysis

8. Buyer: AVI-SPL Buyer Focus: Audio Visual

  • Seller: Sharp’s Audio Visual
  • Seller Focus: Audio Visual
  • Summary: Armed with Sharp’s team, AVI-SPL will “significantly enhance and expand its ability to design, build, manage, and support collaboration technology deployments for organizations throughout Canada and around the world,” the companies said.
  • News Analysis

9. Buyer: BV Investment Partners Buyer Focus: Private Equity

  • Seller: Apps Associates
  • Seller Focus: Oracle Partner
  • Summary: BV acquired majority control of Apps Associates, a global IT services company that specializes in cloud database migrations and managed services wrapped around Amazon Web Services (AWS), Oracle, Salesforce and NetSuite deployments. Financial terms were not disclosed, but the Apps Associates team will maintain “considerable ownership” in the business.
  • News Analysis

10. Buyer: Capgemini Buyer Focus: Global IT Services

  • Seller: Lyons Consulting
  • Seller Focus: ISV Expert
  • Summary: Lyons Consulting Group is a 300-person Salesforce Commerce Cloud, SAP Hybris and Magento partner. Lyons (Chicago, Illinois) focuses on digital business transformation services in North America. Lyons clientele includes GoPro, Titleist/FootJoy, Timex, Charlotte Russe, Vince, and Bayou Steel. The M&A deal aligns with another recent Capgemini acquisition — Itelios, a European Salesforce Commerce Cloud solutions provider.
  • News Analysis

Continue to next page for M&A deals 11 through 20 for 2017.