IT Services Acquisitions in 2019

Boston-based private equity firm M/C Partners acquired the Managed Services division of West Monroe Partners in a carve-out deal that closed December 30, 2019. The business, a Chicago-based IT managed services provider serving small and mid-size businesses, will operate as a standalone platform under new CEO Wayne Kiphart to pursue growth and investments in service delivery and IT capabilities.

Indecomm Digital Services, a Warburg Pincus-backed provider of product engineering and digital experience services, has acquired nearshore software development firm Avantica Technologies. The acquisition expands Indecomm's footprint and delivery capacity across Latin America (Costa Rica, Peru, Bolivia, Colombia) and strengthens its nearshore product-engineering capabilities for North American clients.

Belgium-based Unifiedpost Group SA has acquired UK document-management specialist Prime Document from private equity owner Maven Capital Partners. The deal gives Unifiedpost an entry into the UK market and complements its e-billing, EDI and digital document services with Prime's print, portal and distribution capabilities.

Affiliates of funds advised by BC Partners completed an all-cash acquisition of Presidio, Inc. for approximately $2.2 billion (including net debt), taking the company private and resulting in the delisting of Presidio’s common stock. BC Partners said the transaction will support Presidio’s growth initiatives and strategic investments to expand its digital infrastructure, cloud and security capabilities.

Carbon60, a PE-backed managed cloud services provider, has acquired Cirrus9, a Saint John, New Brunswick-based managed cloud and hosting provider, to establish an Atlantic Canada presence and create a national footprint. The deal, completed with support from advisor RBC, expands Carbon60’s managed public/private cloud, hosting and security capabilities for Canadian enterprise and public-sector clients.

Alithya Group Inc. acquired Travercent LLC, a US-based Oracle cloud-focused consulting group specialized in the healthcare sector, for approximately US$18.0 million paid in cash and Alithya subordinate voting shares. The transaction adds Travercent's Oracle cloud implementation expertise and its CAPSURETM healthcare supply-chain IP to Alithya's enterprise solutions, strengthening Alithya's healthcare and Oracle cloud capabilities in the United States.

CONET Technologies, a portfolio company of H.I.G. Capital, has agreed to acquire PROCON IT AG. The deal strengthens CONET's presence in southern Germany and expands its capabilities in SAP Business Intelligence, data intelligence, and cloud solutions; PROCON IT's management will remain in place.

Belcan, a portfolio company of AE Industrial Partners, acquired Base2 Solutions, a Bellevue-based provider of software and systems engineering consulting services, from Safran. The acquisition expands Belcan's digital systems and software capabilities and broadens its geographic footprint in major U.S. aerospace hubs. Terms were not disclosed.

FirstLight, a Northeast fiber-optic and telecom provider headquartered in Albany, New York, acquired Massachusetts-based ColoSpace, a regional colocation and managed IT services provider. The acquisition adds four data centers (nearly 20,000 square feet) and expands FirstLight's data center, cloud and managed services capabilities across Massachusetts and southern New Hampshire; financial terms were not disclosed.

KORE Wireless Group (KORE) has acquired Integron, an IoT solutions and managed services provider with offices in Rochester, New York and Ulestraten, Netherlands. The deal expands KORE’s IoT solutions, managed services and connected-health capabilities, bringing Integron’s certifications and expertise in healthcare, pharmaceuticals and life sciences into the KORE portfolio.

Horizon Capital has made a majority investment in Ascent Software and simultaneously completed the acquisition of TechHuddle in a combined £30m transaction. The deal creates a scaled technology services platform headquartered in Reading (with delivery centres in Malta and Bulgaria), giving Ascent over 100 clients and more than 300 developers to accelerate organic growth and further buy-and-build activity.

Rogers, Arkansas-based TeleComp Holdings, Inc. acquired Cushing, Oklahoma-based Beasley Technology, Inc., completing the transaction on November 14, 2019. The acquisition expands TeleComp's engineering, installation and NOC capabilities, roughly doubles its headcount to 100+ employees and strengthens its cloud telephone and managed IT service offerings.

Tech Data completed its acquisition of DLT Solutions, a software and cloud solutions aggregator focused on the U.S. public sector, adding public-sector contract vehicles and expertise to Tech Data's channel offerings. The deal (reported purchase price ~$205 million) makes DLT a wholly owned subsidiary and expands Tech Data's capabilities across cloud, cybersecurity, analytics and IT infrastructure for government customers.

Kin + Carta has acquired Spire Digital, a Denver-based software development and digital transformation firm, to strengthen its Innovation capabilities and establish a strategic foothold in the western United States. Spire’s team of over 100 engineers and designers will remain based in Denver and continue serving Fortune 500 and mid-market clients as part of Kin + Carta’s global offering.

Funds managed by Harvest Partners have acquired Service Express, a Grand Rapids-based provider of post-warranty data center equipment maintenance services, from Pamlico Capital. Service Express' management, led by CEO Ron Alvesteffer, will remain significant owners as Harvest provides capital and strategic resources to accelerate geographic expansion and market penetration.

Coretelligent, a VSS portfolio company, acquired managed IT firm SoundView IT Solutions, LLC in a private transaction announced November 19, 2019; financial terms were not disclosed. The deal expands Coretelligent’s managed IT, cloud and security capabilities for financial-services clients in the New York / tri‑state market and brings SoundView’s leadership team into Coretelligent’s executive ranks.

Eliassen Group, a national strategic consulting and talent solutions firm based in Reading, Massachusetts, has acquired Webster Consulting Group, an IT consulting and staffing firm based in Woburn, Massachusetts. The deal brings Webster's project management, business analysis, QA, development and data & analytics staffing capabilities into Eliassen's broader service offering to expand capabilities and client reach.

EPAM Systems has acquired NAYA Technologies, an Israel-headquartered consultancy, and its US subsidiary NAYA Tech (San Jose, CA) to strengthen EPAM's cloud migration, data management and database migration capabilities, including the migVisor automated migration assessment tool. The acquisition augments EPAM's technology consulting practice and accelerates its ability to deliver end-to-end cloud and data services to enterprise clients.

Navint Partners, backed by Boathouse Capital, has acquired Statera, a Salesforce-focused implementation firm specializing in CPQ and Billing. The acquisition brings deep Salesforce CPQ & Billing technical capability to Navint’s advisory and lead-to-revenue services to help clients modernize their lead-to-revenue operations.

Corsica Technologies, a managed IT services platform backed by Inverness Graham Investments, has acquired Fort Wayne, Indiana-based Symplexity, a managed security, cloud, networking and technology consulting provider. The add-on expands Corsica's geographic footprint and capabilities — adding cybersecurity, managed security services and a Digital Transformation practice led by Symplexity CEO Brian Harmison. Terms were not disclosed.

ASGN Incorporated (through its Apex Systems division) completed the acquisition of Intersys Consulting, LLC for $67.0 million in cash. Intersys — an Austin-based data, analytics and digital transformation consultancy with ~ $31M revenue in 2019 — will join Apex Systems to deepen ASGN's capabilities in cloud, data science and digital product development.

West Monroe Partners acquired Minneapolis-based digital product studio GoKart Labs to expand its digital transformation, product design, and digital innovation capabilities. Clearsight Advisors served as the buyside advisor to West Monroe on the transaction, which West Monroe described as the largest acquisition in its history to date.

Marlin Equity Partners completed a majority investment in Whitlock, a Richmond, Virginia–based systems integrator specializing in audiovisual (AV) and video collaboration (VC) solutions. The investment positions Whitlock to scale its national footprint and expand its AV/VC strategy, implementation, managed services and support for enterprise customers.

Converge Technology Solutions Corp. acquired Essex Technology Group, Inc. (Essextec), a Northeast U.S.-based cloud, cognitive and cybersecurity solutions provider. Converge said it will integrate Essextec's AI, cybersecurity and data analytics capabilities into its Software-Enabled Hybrid IT platform to expand capabilities for both companies' customer bases.

Medicus IT, a healthcare-focused managed services provider based in Alpharetta, Georgia, acquired PriorityOne Group, a healthcare managed IT services provider headquartered in Rutherford, New Jersey. The acquisition expands Medicus IT’s national presence—adding a New Jersey location and healthcare IT capabilities—and Nelson Gomes of PriorityOne will join the combined company as SVP of Business Development and General Manager of New Jersey.

Evergreen Services Group has taken an investment stake in Tech-Keys, a Howell, New Jersey–based managed service provider (MSP). Tech-Keys will continue to operate independently under founder and CEO Michael Fried; the MSP reported roughly $11.7 million in 2018 revenue and about 62 employees.

Huron Capital's IT solutions platform InterVision has acquired SeyVu, a Folsom, California-based machine learning and artificial intelligence company. The add-on strengthens InterVision's AI and advanced analytics capabilities to support clients across industries including high-tech, manufacturing and the public sector.

Huron Capital’s IT solutions platform InterVision has acquired Fotis Networks, a Boston-area IT professional services firm specializing in cybersecurity, networking and infrastructure engineering. The add-on expands InterVision’s cybersecurity and cloud capabilities and provides access to Fotis’ government, healthcare and education clients; Fotis’ founder Frank Loulourgas will remain with the combined company.

Converge Technology Solutions Corp. (TSXV:CTS) acquired Datatrend Technologies, Inc., a Minneapolis/St. Paul–area technology solutions provider, adding Datatrend’s teams and customers to Converge’s Hybrid IT platform. The deal expands Converge’s geographic footprint and technical capabilities in next‑gen data center, hybrid cloud, infrastructure and managed services across North America.

Ntiva, a PE-backed managed IT services provider, has acquired 3Points, a Chicago-based managed IT services firm. The deal — announced by Ntiva and its sponsor Southfield Capital — expands Ntiva's Midwest footprint, strengthens its service offering for commercial and nonprofit clients, and represents an add-on to the Ntiva platform.

Unica, a Triton Fund IV company, has acquired DotWood, a Netherlands-based specialist in Microsoft Dynamics solutions, to strengthen Unica’s ICT capabilities and better serve customers seeking simplified, integrated business-process and CRM solutions. Financial terms were not disclosed; the deal is positioned as an add-on to Unica’s existing ICT offering.

Infogain, a ChrysCapital-backed software platform engineering firm headquartered in Los Gatos, has acquired Silicus Technologies, a Houston-based Microsoft Azure-focused cloud transformation and managed services provider. The deal expands Infogain's Azure, IoT, data and AI capabilities and adds Silicus' customer relationships and delivery capacity across the US and India.

The Cook & Boardman Group LLC acquired Jacksonville, Florida-based Converged Communications, Inc., a full-service systems integration and managed services provider. Converged will operate as a division of A3 Communications (part of Cook & Boardman), expanding Cook & Boardman's systems integration capabilities and footprint in Northeast Florida and Southeast Georgia. Terms were not disclosed.

Sentinel Capital Partners has completed a recapitalization of New Era Technology, partnering with New Era's management team and incumbent investor Gemini Investors. The transaction (terms not disclosed) positions New Era to continue its organic growth and pursue additional add-on acquisitions to expand its managed services and systems-integration capabilities.

United Virtualities, a New York-based tech consultancy, has acquired Sawyer Effect, a boutique New York and Guadalajara-based software development and ecommerce consultancy. The deal expands United Virtualities' ecommerce and Adobe Experience Manager capabilities and adds a Latin America delivery presence; terms were not disclosed.

Xoriant Corporation has acquired Arth Systems, a Redmond-based Microsoft-focused systems integrator and cloud managed services provider. The acquisition strengthens Xoriant's Microsoft cloud stack capabilities and system-integration expertise to better serve mid-market clients in technology, retail, and healthcare.

Dinocrates Group, a Rockville, Maryland-based strategy and technology advisory firm, acquired Global Management Systems Inc. (GMSI), a secure networking and communications provider serving federal and commercial markets. The acquisition adds roughly 80 skilled employees and expands Dinocrates' capabilities into mission-critical communications, network engineering and secure mobility for defense and commercial customers.

GlobalLogic Inc. has acquired Skookum, a Charlotte-based digital strategy, design and development firm. Skookum will continue to operate under its existing leadership as a wholly owned subsidiary, expanding GlobalLogic’s design and engineering capabilities and strengthening its presence in the eastern U.S.; terms were not disclosed.

Verndale, a customer experience agency headquartered in Boston, acquired Minneapolis-based Aware Web Solutions to expand its Midwest presence and strengthen its technical capabilities across CRM, CMS, commerce, and PIM solutions. The deal unites Aware's implementation experience in manufacturing, healthcare, and higher education with Verndale's strategy, design, and digital marketing services under the Verndale brand.

Hargray Communications has agreed to acquire Infinity Network Solutions, an IT services firm with operations in Macon and Covington, Georgia. The deal expands Hargray’s Data Center and Managed Services (DCMS) capabilities in the Southeast; Infinity’s founders Robert and Brian Betzel will take on leadership roles within Hargray following the transaction.

Sev1Tech, a PE-backed IT modernization and cybersecurity firm, has acquired Engineering Solutions and Products (ESP), a Chantilly-based provider of C4ISR systems engineering, logistics, and mission support for the U.S. Army. The deal expands Sev1Tech's defense-focused capabilities and federal contract footprint, and serves as an add-on to its PE-backed platform.

Dovel Technologies, a McLean, Virginia-based federal IT services firm, has acquired Ace Info Solutions to diversify its client base and expand its technical capabilities in cloud engineering, DevSecOps, and data analytics. The combined company will expand Dovel's market presence in the federal sector and bring the combined headcount to more than 2,200 technologists, scientists, and support staff.

Compudyne, a regional IT solutions provider based in Duluth, Minnesota, has acquired the assets of Revelation Network Management, Inc. (RevNet), an IT services firm headquartered in Braham, Minnesota. The acquisition expands Compudyne's presence and technical capabilities in Minnesota, adding RevNet's SaaS, colocation/hosting, business continuity and hybrid cloud offerings to Compudyne's service portfolio.

Diversified, a portfolio company of Tailwind Capital, acquired Advanced Presentation Products, a Toronto-area audio-visual systems integrator. The deal is Diversified's tenth add-on since Tailwind acquired the company in December 2015 and establishes a Canadian base for Diversified's North American operations.

Accenture has acquired U.S.-based Fairway Technologies, a provider of product and platform engineering services, to bolster Accenture's Product and Platform Engineering Services practice. Terms were not disclosed; Fairway comprises more than 80 engineering professionals with offices in San Diego and Irvine, California, and Austin, Texas.

ePlus inc. acquired certain assets and liabilities of Innovative Technology Systems & Solutions, Inc. (dba ABS Technology), closing the transaction on August 23, 2019 for undisclosed terms. The deal expands ePlus' consultative technology and managed services footprint in the Mid-Atlantic region and adds customers and capabilities across healthcare, education and government verticals.

NuMSP has acquired NTConnections, a Reston, Virginia–based managed service provider, marking NuMSP’s entry into the Virginia market. NTConnections provides full-service IT and cybersecurity solutions for small and mid-sized businesses; the deal is part of NuMSP’s roll-up strategy (its 13th acquisition) to build a nationwide MSP platform.

New State Capital Partners acquired a majority stake in CDS (Computer Data Source), a provider of multi-vendor data center hardware maintenance and support. New State will back CDS' growth and pursue service diversification and add-on acquisitions while CDS' management team (including several senior executives) remain involved; terms were not disclosed.

Rizing, LLC has acquired Transcend Spatial Solutions, a Charlotte-based GIS and LiDAR services firm, to integrate geospatial capabilities with Rizing's SAP enterprise asset management offerings. The acquisition, supported by Rizing's investment partner One Equity Partners, aims to expand geospatially-enabled EAM solutions across transportation, utilities and oil & gas customers.

Barcodes Group, a portfolio company of Odyssey Investment Partners, has acquired Plasco ID Holdings, LLC from BV Investment Partners. The acquisition combines two identification and automatic identification/data capture (AIDC) businesses to create a scaled platform for ID and access control products, software, consumables and services across SMB, mid-market and enterprise customers.