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

Welcome to M&A deals 11 through 20 for 2017.

11. Buyer: CGI Buyer Focus: MSP

  • Seller: Summa Technologies
  • Seller Focus: MSP
  • Summary: Summa is a 200-person IT consultancy and seven-time Inc. 5000 honoree that has software development expertise and a strong business footprint in the Pittsburgh, Pa., area. Summa’s 2016 revenues were about $35 million, and the company has grown about 44 percent over the past three years. Summa is CGI’s fourth strategic consulting acquisition in the U.S. in the 2017 fiscal year.
  • News Analysis

12. Buyer: Chess Buyer Focus: IT Services

  • Seller: Foursys
  • Seller Focus: Security
  • Summary: Foursys is a 10-year Sophos partner. The deal adds more than £11m to Chess’s turnover, bringing it to £120m, the company said. Foursys has about 50 employees and offers IT services across the UK. Chess, by contrast, offers a lengthy list of IT services including: Product supply and installation, storage, hosted and cloud solutions, managed services, networking infrastructure, professional services, business continuity, unified communications and systems management. As of January 2016, Chess had 450 employees.
  • News Analysis

13. Buyer: Computacenter Buyer Focus: IT Services

  • Seller: TeamUltra
  • Seller Focus: ISV Expert
  • Summary: Computacenter, a UK-based IT service provider, gains more than 60 ServiceNow implementation and ITIL-certified service management specialists.
  • News Analysis

14. Buyer: Congruity Buyer Focus: MSP

  • Seller: NextGen Storage
  • Seller Focus: Data Storage
  • Summary: NextGen’s cloud-integrated data storage and data management technologies, coupled with software-defined cloud-interconnect services, can help Congruity360 innovate with an enhanced value proposition in distributed data management, the company claims.
  • News Analysis

15. Buyer: Contegix Buyer Focus: CSP

  • Seller: BlackMesh
  • Seller Focus: MSP
  • Summary: Cloud hosting provider Contegix acquired BlackMesh Inc., an Ashburn, Virginia-based managed service provider (MSP) that specializes in web hosting, cloud services and secure compliance. This is the third acquisition for St. Louis-based Contegix since November 2016, when the bulk of the company was sold to Strattham Capital, a private equity firm that invests in “high-potential business IT companies.”
  • News Analysis

16. Buyer: ConvergeOne Buyer Focus: MSP

  • Seller: Strategic Partners and Services
  • Seller Focus: IT Services
  • Summary: The AOS acquisition comes as ConvergeOne gears up for a merger-driven IPO in early 2018. AOS, based in Overland Park, Kansas, has provided IT solutions in the Midwest for roughly 25 years. ConvergeOne will tap into AOS’s expertise across Microsoft, Cisco, SharePoint and Service Request Management solutions. ConvergeOne, backed by Clearlake Capital Group, has acquired multiple IT solutions providers in recent years, and the company expects to launch an IPO via merger in Q1 2018.
  • News Analysis

17. Buyer: ConvergeOne Buyer Focus: MSP

  • Seller: Annese & Associates
  • Seller Focus: IT Services
  • Summary: The latest in a growing list of Cisco partner-oriented M&A deals.
  • News Analysis

18. Buyer: Crown Castle Buyer Focus: Wireless

  • Seller: Wilcon Fiber Optics Seller Focus: Fiber Networks
  • Summary: Crown Castle paid about $600 million for Wilcon, gaining fiber optic and data center infrastructure. During the first year of the deal, Crown Castle expects Wilcon to contribute $40 million in gross margin.
  • News Analysis

19. Buyer: CyrusOne Buyer Focus: Data Centers

  • Seller: Zenium
  • Seller Focus: Data Centers
  • Summary: CyrusOne, a global data center real estate investment trust (REIT), acquired Zenium for $442 million — or roughly 18-times Zenium’s annualized adjusted EBITDA based on a range of factors. Quantum Strategic Partners is the seller. The deal is expected to close in the first quarter of 2018.
  • Valuation: $442 million, 18X EBITDA.
  • News Analysis

20. Buyer: DataBank Buyer Focus: MSP

  • Seller: Edge Hosting
  • Seller Focus: MSP
  • Summary: The deal expands DataBank’s footprint of managed cloud services, and also bolsters the company’s compliance-centric services. As of early 2016 or so, it sounds like Edge Hosting had bootstrapped its way to an $18 million annual revenue run rate, according to the One Million by One Million blog. Edge designs, operates, and simplifies secure and compliant IaaS and PaaS managed cloud hosting, the company says. Much of the focus involves operational coverage of controls for FedRAMP, HIPAA, PCI, SSAE 16 SOC 2 Type 2 and EU Privacy Shield Framework.
  • News Analysis

Continue to next page for M&A deals 21 through 30 for 2017.