IT Services Acquisitions in 2020

CGI acquired the Professional Services Division of Harris, Mackessy & Brennan, Inc. (HMB), a transaction that closed on December 31, 2020. The division brings approximately 165 consultants and expanded consulting capabilities and client relationships—notably in the utilities market and with the State of Ohio—strengthening CGI's footprint in Central Ohio and the Columbus metro.

K2 Partnering Solutions has acquired The Crevalle Group, a Salesforce partner based in Atlanta, Georgia. The acquisition (completed December 31, 2020) expands K2's footprint and capabilities within the Salesforce ecosystem across North America by adding Crevalle's staff augmentation, managed services and staffing capabilities.

New Charter Technologies, a platform backed by Oval Partners, has acquired Stronghold Data, an established managed services provider based in Joplin, Missouri. The deal expands New Charter's MSP footprint across Missouri, Kansas, Oklahoma and Arkansas and represents another add-on in Oval Partners’ buy-and-build strategy for New Charter.

One Equity Partners (OEP) completed the acquisition of Madrid-headquartered VASS Consultoría de Sistemas, a European provider of digital transformation, cloud infrastructure and managed IT solutions. Financial terms were not disclosed; VASS will continue to be led by founder Francisco Javier Latasa (who remains an investor) and will serve as OEP’s buy-and-build platform to accelerate capability expansion and geographic growth in Spain and Latin America.

Distributed Ledger, Inc. (DLI), a blockchain technology service provider based in Atlanta, acquired Crypto Mining Tools (CMT), a North American cryptocurrency mining hardware supplier and creator of online mining tools. CMT founder Scott Offord will join DLI as Director of Asset Management as DLI plans to rebrand CMT, relaunch its podcast, and scale services for CMT's customers.

Valeo Networks, a division of Saalex Corporation and national Managed Security Service Provider (MSSP), has acquired Etech Solutions, an Ankeny, Iowa-based managed service provider (MSP) and affiliate EtechASP. The acquisition establishes Valeo's first Midwest office, expands its nationwide MSSP footprint and capabilities in cybersecurity, managed services and cloud hosting; financial terms were not disclosed.

Recognize Partners, a technology-focused private equity platform, has made a strategic growth investment in Ciklum Group Limited, a UK-headquartered digital transformation and custom software services firm. The investment will see Recognize partner with Ciklum’s existing shareholders and management to support capability expansion and global growth across hi-tech, fintech and consumer end markets.

A fund advised by Norvestor Advisory AS has agreed to acquire a c.52% majority stake in Pearl Group, a Nordic IT solutions and ERP partner headquartered in Lysaker, Norway. The investment provides Pearl with expansion capital to grow organically and via M&A while the existing management and key employees retain a significant minority stake and reinvest proceeds.

Netrix, LLC has acquired the Microsoft Consulting and Managed Services Business Unit of Prosum, Inc., expanding Netrix's West Coast presence and strengthening its Microsoft-focused managed services capabilities. The transaction transfers Prosum's Microsoft services team, customers and vendor relationships into Netrix to deepen its managed services offering.

Austin-based private equity firm CenterGate Capital made an investment in Soroc Technology, an outsourced IT services provider headquartered in Woodbridge, Ontario. The capital injection is intended to support Soroc's growth and expansion of its service offering while founder and CEO Rudy Cheddie remains in leadership.

UK private equity firm Livingbridge has made an investment in Dublin-headquartered communications and IT provider Welltel to support the company’s M&A programme, organic growth and infrastructure scaling. Welltel, founded in 2007 and led by CEO Ross Murray and Executive Chairman John Quinn, serves roughly 3,500 customers across enterprise and public sectors and has completed six prior acquisitions.

Ntiva, a managed IT services provider backed by Southfield Capital, has acquired Queens-based Netlink Systems and Chicago-based Forget Computers, expanding its presence in the New York metro and enhancing Apple support capabilities in the Midwest. The add-on deals increase Ntiva’s client base and broaden its service offerings in managed IT, cloud hosting and cybersecurity.

Novatech, a nationwide Managed Office provider and a portfolio company of Trivest Partners, has acquired United Laser, a Florence, South Carolina–based managed print services provider. United Laser will operate as a division within Novatech, maintaining its headquarters and management team while expanding Novatech's managed print capabilities nationwide as an add-on to its portfolio.

ATSG, a PE‑backed tech‑enabled managed services and solutions company, has acquired MTM Technologies, Inc., an IT managed services provider with deep Cisco and Citrix partnerships. The acquisition expands ATSG’s national footprint and technical capabilities across datacenter, endpoint, network, and cybersecurity infrastructure, and bolsters its rediManage/rediTech/rediCloud/rediSecure offerings.

Arlington Capital Partners announced a strategic combination of its portfolio company Octo with Fairfax-based Sevatec to create a larger federal IT modernization and mission-software provider. The combined firm will operate under Octo leadership, generate nearly $300 million of revenue and employ approximately 1,100 people to serve defense, intelligence, federal health and civilian customers.

T-Base Communications, a portfolio company of Thompson Street Capital Partners, has acquired Accessible360, a Minneapolis-based digital accessibility auditing firm. The deal combines T-Base's document accessibility and automation capabilities with Accessible360's web and digital accessibility expertise to create a broader, full-service accessibility offering for enterprise customers; terms were not disclosed.

Alarm.com has acquired Shooter Detection Systems (SDS), a provider of indoor gunshot detection technology, to expand its commercial security solutions. SDS will operate as a subsidiary led by its existing management team and its Guardian gunshot detection system will be integrated with Alarm.com's platform to enhance situational awareness for commercial and government customers.

Velosio, a Columbus, Ohio-based Microsoft business applications and cloud solutions provider, has acquired BroadPoint, a Microsoft Gold Certified Partner that specializes in business applications for not‑for‑profits and industry verticals including manufacturing and professional services. The deal adds almost 50 sales, technical and delivery resources to Velosio, strengthening its Dynamics footprint and vertical IP in the eastern U.S.

Boston-based private equity firm Abry Partners completed a recapitalization of GreenPages Technology Solutions, a hybrid cloud services provider and systems integrator. The recapitalization will provide capital to accelerate GreenPages’ organic growth, support M&A activity and expand its go-to-market for cloud, security, and managed IT services.

Leidos Holdings, Inc. agreed to acquire 1901 Group, a provider of managed IT services, cloud and cybersecurity solutions, to expand Leidos' digital modernization and cloud capabilities. The transaction is expected to close in Q1 2021 for a purchase price of $215 million funded with cash on hand.

An affiliate of Veritas Capital completed the $3.4 billion cash acquisition of Northrop Grumman's federal IT and mission support services business. The business, which generated approximately $2.3 billion in revenue in 2020, will be combined with Veritas portfolio company Peraton to create a scaled government mission capability integrator serving defense, intelligence, civil and health agencies.

Service Express, a US-based third-party data center maintenance provider, acquired the third-party maintenance division of Zensar Technologies to strengthen its international presence and support Zensar's maintenance customers going forward. The deal transfers Zensar's data center maintenance customers and capabilities to Service Express and follows Service Express' broader push to expand its global TPM footprint and integrations on its ExpressConnect platform.

New Charter Technologies, a platform backed by Oval Partners, has acquired Olmec Systems, Inc., a 34-year managed service provider that services more than 5,000 endpoints across the NJ/NYC and metro Atlanta markets. The transaction is an add-on to New Charter's roll-up of North American MSPs, allowing Olmec's owners to monetize and optionally reinvest alongside Oval Partners while remaining part of New Charter's leadership.

XTIVIA, a B2B IT solutions firm, has acquired RightStar, an ITSM/ITIL and DevOps consulting company based in Northern Virginia. The acquisition expands XTIVIA’s managed services, software and government-facing capabilities and brings RightStar’s federal and commercial practice into XTIVIA’s service portfolio.

LDC has made a multi-million-pound minority growth investment in Foundation SP (FSP), a Reading-headquartered digital transformation and managed services provider. The funding will support FSP’s organic expansion of cloud, productivity, data and AI services, strengthen its management team and enable exploration of complementary acquisitions.

Riverside Partners has completed the merger of Convergence Networks (Portland, Oregon) and Grade A (Ottawa, Canada) to form a combined managed IT and cybersecurity services platform serving small- and medium-sized businesses. Riverside invested new equity to accelerate growth, while management teams from both companies will continue to lead the combined organization and remain significant shareholders.

Convergint Technologies has acquired Innovative Medical Systems (IMS), a healthcare-focused systems integrator, and Smith Hamilton, Inc., a provider of equipment and security solutions for financial institutions. The acquisitions expand Convergint's presence and capabilities in the U.S. healthcare and financial services verticals and add local installation and service capacity across those markets.

Logically, the MSP platform backed by The Riverside Company, has acquired three add-on managed service providers: Personal Computer Resources (PCR), Network Support Company (NSC) and Network Guidance 2.0 (NG2). The transactions expand Logically's geographic footprint across the East Coast, Midwest and national accounts while broadening its service capabilities and customer reach to accelerate platform growth.

easyname GmbH, part of the dogado group (a portfolio company within European Directories / Triton III), has taken over Austrian hosting competitor sprit.org. The transaction — agreed with sprit partners Jan Egger and Daniel Colakovic — expands easyname and the dogado group's presence and competitive position in the Austrian hosting market.

New Era Technology acquired Global Convergence, Inc., a global managed services and network implementation provider, in a deal announced December 2020. Three Sixty Seven served as exclusive advisor to Global Convergence; the acquisition strengthens New Era's managed technology solutions and expands its global service capabilities.

Perwyn has acquired a majority stake in Nottingham-based Agilitas IT Solutions as part of a management buy-out led by CEO Shaun Lynn. NVM Private Equity has exited its investment; Perwyn will support Agilitas' international expansion, service acceleration and potential M&A. Agilitas employs about 115 people and has appointed Bill Wilson as Chairman.

Olympia Capital Partners (OCP) announced a strategic investment and partnership with IT services firms Maestral Solutions and Mistral Technologies, creating a combined Group headquartered in Amsterdam. OCP will support the integrated business with board appointments and operational resources to scale organically and via further acquisitions across Western Europe and North America.

Sirius Computer Solutions has acquired Boca Raton-based Champion Solutions Group, bringing the MessageOps practice and Inscape cloud monitoring product into Sirius. The deal expands Sirius' Microsoft cloud capabilities, roughly doubles its Microsoft solutions practice, and aims to grow recurring revenue and presence in Florida and the Southeast.

SugarCRM acquired Loaded Technologies, a Sydney-based CRM strategy and cloud implementation services provider, to strengthen its implementation and consulting capabilities in Australia and the broader Asia-Pacific region. The deal brings Loaded's Sugar implementation expertise into SugarCRM as the vendor seeks to accelerate time-to-value for mid-market customers and address growing demand for cloud-based customer experience solutions in APAC.

Wolf Consulting, backed by Evergreen Services Group, has acquired Xpert Technologies, a full-service IT provider specializing in managed services, VoIP, data center services and cybersecurity. Xpert, founded in 1998 and operating primarily in the Detroit, Michigan area, will continue to operate independently while receiving support from Wolf Consulting; terms were not disclosed.

GlobalLogic Inc. has acquired ECS Group, a London-based digital transformation and DevOps consultancy with strong AWS capabilities. The acquisition expands GlobalLogic’s cloud-centric capabilities and Financial Services footprint in Europe; ECS will operate as a wholly owned subsidiary under its existing leadership.

Ernst & Young LLP (EY US) has acquired Zilker Technology, a digital consultancy and systems integrator based in Austin, Texas. The acquisition will strengthen EY's e-commerce, digital, enterprise integration, and cloud capabilities and bring Zilker's ~360 employees into EY's Digital and Emerging Technologies group.

IBM has reached a definitive agreement to acquire TruQua Enterprises, an SAP consulting partner that specializes in finance and analytics solutions. The acquisition bolsters IBM Services' SAP S/4HANA finance capabilities and supports IBM's hybrid cloud growth agenda; financial terms were not disclosed.

Velocity, a managed services company headquartered in Holland, Ohio, has acquired CTI Solutions, a digital signage and content management technology company based in Overland Park, Kansas. The acquisition is intended to strengthen Velocity’s in-house SaaS development capabilities and expand its digital signage, CMS and interactive touchless solution offerings for hospitality, healthcare, retail and entertainment customers.

Executech, a Salt Lake City-based managed IT services provider backed by Evergreen Services Group, has acquired USPCNET, a Phoenix-area MSP. The add-on expands Executech's footprint into the Phoenix market and brings USPCNET employees and clients access to broader technical resources and expanded cybersecurity and cloud capabilities.

Park Place Technologies has acquired Curvature, Inc., combining the two largest third-party data center maintenance providers to create the largest global TPM provider. The deal (Park Place is a portfolio company of Charlesbank Capital Partners and GTCR) increases field-service capacity and parts inventory, expands Park Place into four international markets, and strengthens its managed services offering.

Trace3, an H.I.G. Capital portfolio company, has acquired Groupware Technology to expand its market presence in Northern California and Arizona and broaden its cloud, data intelligence, and data center services. Groupware will remain led locally while gaining access to Trace3's broader technology portfolio and capabilities in security, AI, and managed services.

Chesterfield, Missouri-based Swizznet, a cloud-hosting and accounting-focused software provider in the Bluff Point Associates portfolio, has acquired Lenexa, Kansas-based RightSize Solutions, an outsourced IT and cybersecurity provider for independent registered investment advisers (RIAs). The deal expands Swizznet's cybersecurity, compliance and managed-technology offerings for the financial services and accounting markets as an add-on to its existing platform.

Dutch SAP Gold partners Serac and Xperi are merging to create a combined one-stop-shop for mid-market organizations seeking SAP solutions. Investment firm Mentha will take a stake in the new organization to support international growth and an expanded SAP offering across BusinessOne, ByDesign and S/4HANA.

GCOM, a provider of technology solutions for state and local governments, has acquired managed services provider 20/20 Teknology. The deal expands GCOM's capabilities in industrial-strength networks, unified and virtual communications, IT infrastructure and managed services to better serve public-sector customers; GCOM is backed by private equity firm Sagewind Capital.

Softline Holding has acquired the software development outsourcing business of the Aplana Group. Approximately 200 employees from three Russian development centers (Moscow, Voronezh and Ufa) will join Softline as the Aplana Group retains the Aplana brand and focuses on its product and R&D strategy.

Eze Castle Integration, a portfolio company of H.I.G. Capital, has acquired Boston-based digital transformation firm NorthOut. The acquisition expands Eze Castle's application development, digital experience design, DevOps and systems integration capabilities to accelerate its digital transformation offering for financial and professional services clients.

SugarCRM Inc. has acquired W-Systems, a New Jersey-based CRM and marketing automation solutions and services provider (a division of Gannett's UpCurve, Inc.). The acquisition brings W-Systems' implementation, customer success and development teams and high-demand add-ons into Sugar's North American operations to expand implementation capacity and accelerate delivery of sales and marketing automation services to mid-market customers.

Navisite has acquired Dickinson + Associates, a Chicago-based SAP systems integrator and Premier SAP Gold Partner, to expand its SAP managed cloud and professional services capabilities. The deal adds approximately 200 SAP professionals and broadens Navisite's ability to support SAP S/4HANA migrations and SAP cloud solutions for mid-market and enterprise customers.

Coretelligent, a managed IT and cloud services provider (and portfolio company of VSS Capital Partners), acquired Soundshore Technology Group, a boutique managed services firm serving hedge funds, private equity, RIAs and family offices. The deal — terms not disclosed — expands Coretelligent's financial-services IT portfolio, adding Soundshore's client relationships and contributing to a combined organization of over 200 employees and 500 clients.