IT Services Acquisitions in 2021

An affiliate of Variant Equity Advisors has acquired CompuCom from The ODP Corporation. The transaction is a corporate divestiture that positions Variant to enter the managed services/digital workplace market and provides CompuCom with resources to expand its service offerings and market leadership.

Seattle-area technology consulting firm Fresh Consulting received a strategic growth investment from The Cynosure Group. The minority capital injection will support Fresh's capability expansion (including internal development and M&A) while the company's founders and management remain majority owners.

Data Network Services, a Virginia-based managed service provider backed by Cloud Equity Group, has acquired Datacom Specialists, an Ohio-based managed service provider serving small- and medium-sized businesses. The deal is DNS’s first add-on since CEG’s December 2020 investment and is intended to expand DNS’s service offerings and client footprint; financial terms were not disclosed.

PCI has acquired the IT activities of Rosenboom in Almere, adding an experienced small IT team to its IT Solutions offering. The move is an add-on to strengthen PCI's IT capabilities and broaden its service depth as part of its buy-and-build strategy.

Baton Rouge-based managed services provider General Informatics has acquired Unicom Technologies, a Texas-based MSP focused on banking, credit union and financial-services customers. The acquisition, advised by FOCUS Investment Banking and backed by Rosewood Private Investments, expands General Informatics' geographic footprint in Texas and strengthens its financial-services vertical capabilities.

Advent International has acquired a majority stake in Encora, a global digital engineering and software product development services provider. Warburg Pincus, the prior majority shareholder, retains a minority stake; Advent will partner with Encora's management to accelerate global growth, expand capabilities, and pursue targeted M&A.

Brillio has acquired Cedrus Digital, a New York–based digital transformation and cloud consulting firm with over 150 cloud, data and product engineers. The deal expands Brillio's product & platform engineering, data analytics, cloud security and nearshore capabilities for regulated end markets such as Healthcare and Financial Services; 7 Mile Advisors served as Cedrus' exclusive sell‑side advisor.

UK-based Transparity Solutions Limited, backed by Beech Tree Private Equity, has acquired Ballard Chalmers, a Microsoft Azure-focused custom software development consultancy. The deal strengthens Transparity's application modernisation and Azure development capabilities as it pursues growth to more than 300 staff through organic expansion and strategic add-ons.

AVI-SPL, a Marlin Equity Partners portfolio company, has completed the acquisition of SKC Communications and will merge SKC into AVI-SPL to broaden unified communications (UCC) voice capabilities and expand U.S. geographic coverage. The deal deepens AVI-SPL's cloud voice and contact center expertise while giving SKC customers access to AVI-SPL's global managed services and Symphony platform.

FFL Partners, a San Francisco-based private equity firm, completed a significant investment in Optomi Professional Services, a 100% U.S.-based provider of IT consulting, staff augmentation (Optomi) and domestic rural outsourcing (Provalus). The partnership will support OPS' growth plans — including expanding Provalus delivery centers and broadening Optomi's IT consulting and managed services reach — with financial terms not disclosed.

Wipro Limited has signed an agreement to acquire LeanSwift Solutions, a Florida-headquartered Infor systems integrator specializing in ERP, e-commerce and supply chain solutions. The deal strengthens Wipro's Infor cloud practice and expands the capabilities of Wipro FullStride Cloud Services; the transaction was announced December 15, 2021 and was expected to close by March 31, 2022.

Main Street Capital Corporation provided a $16.4 million first‑lien, senior secured term debt follow‑on investment in portfolio company Hawk Ridge Systems to finance Hawk Ridge’s acquisition of DesignPoint and support internal growth initiatives. Hawk Ridge, a leading value‑added reseller of SOLIDWORKS and 3D printing solutions headquartered in Mountain View, California, will use the financing to expand geographic reach and bolster technical and sales resources.

Kedaara (Kedaara Capital) acquired a significant majority stake in GAVS Technologies, an AI-led digital transformation and managed services provider focused on healthcare, retail, BFSI and other verticals. The investment will support GAVS' growth—accelerating adoption of its ZIF.ai TechOps platform, expanding AI-led managed services and product engineering capabilities, and leveraging Kedaara's and CD&R's global relationships.

German IT consulting firm CONET Group has acquired Karlsruhe-based ISB AG, a 250-employee software development and IT consulting firm, to strengthen CONET's capabilities in process automation, software development and digitalisation for the public sector and automotive industry. The deal was supported by CONET's majority investor IK Partners; financial terms were not disclosed.

ATSG, a New York–based tech‑enabled managed services provider, has acquired Optanix, Inc., a managed network services and SD‑WAN specialist. The acquisition expands ATSG’s capabilities in managed networking, collaboration, contact center and SD‑WAN and strengthens its channel partner offerings.

Unisys Corporation acquired cloud solutions provider CompuGain for $87.3 million on a cash‑free, debt‑free basis. The deal expands Unisys' cloud, application modernization and data management capabilities and adds a team of more than 400 engineers with strong presence in financial services.

Accelalpha, a portfolio company of Century Park Capital Partners, has acquired LogistiChange to expand its Oracle cloud application consulting and post-implementation services across South America. The add-on strengthens Accelalpha’s logistics and WMS capabilities and advances its strategy to broaden Oracle cloud offerings in the region.

Anaheim-based managed services provider The Network Pro has acquired Tucson-based MSP Nextrio. The deal expands The Network Pro’s presence into southern Arizona, transfers Nextrio’s infrastructure and customer portfolio to the buyer, and retains Nextrio’s employees and senior management under the combined organization.

ICF (NASDAQ:ICFI) has entered into a definitive agreement to acquire Creative Systems and Consulting, a provider of IT modernization and digital transformation services for U.S. federal agencies. The deal adds Creative’s ~270-person team and platform expertise (Salesforce, Microsoft, ServiceNow) to ICF’s federal digital capabilities and is expected to be slightly accretive to GAAP EPS in 2022.

Modus Create, a digital transformation and product development services firm headquartered in Reston, Virginia, received a strategic growth investment from private equity firm JLL Partners. The minority investment — Modus Create's first outside financing — will fund growth initiatives to expand capabilities, grow the team, and extend the company's global footprint.

Iron Mountain Incorporated has agreed to acquire ITRenew Inc., a leading IT asset disposition and data center lifecycle management provider, from private equity owner ZMC. The deal closed with Iron Mountain purchasing 80% of ITRenew for approximately $725 million in cash (with the remaining 20% to be acquired within three years for a minimum enterprise value of $925 million), positioning ITRenew as Iron Mountain's platform for Global IT Asset Lifecycle Management and expanding the company's secure ITAD, decommissioning and sustainability capabilities for hyperscale and enterprise customers.

Advania has agreed to acquire UK Microsoft partner Content+Cloud from private equity firm ECI, with the transaction expected to close in December 2021 and generating a reported 4.1x return for ECI. Content+Cloud, backed by ECI since 2016, operates as a managed services and digital transformation provider across Microsoft clouds with roughly 800 employees across UK offices and Cape Town.

MajorKey Technologies, backed by The Acacia Group, has acquired Seattle-based Valence Group, Inc., a digital transformation consultancy of ~90 consultants and engineers. The add-on strengthens MajorKey's strategic consulting, user-centered design and AI/ML/data-integration capabilities and expands its team to over 650 people.

Prodapt, a consulting, technology and managed services provider to the connectedness/telecom vertical, has acquired UK-based SLR Dynamics, a digital engineering and automation services firm serving European and African telcos. The deal will protect 100+ SLR Dynamics jobs, and Prodapt plans to invest over GBP 50 million in the UK and expand the UK workforce by ~400–500 employees to strengthen its capabilities in cloud, security, IoT and product design.

Atos has agreed to acquire Cloudreach, a London-headquartered multi-cloud services provider, to strengthen its multi-cloud, application modernization and security capabilities. Cloudreach employs more than 600 people and generated roughly €100 million of revenue in 2021; the deal is subject to regulatory approvals and was expected to close in early Q1 2022.

Synoptek has acquired Rapid Technologies, an Elite ServiceNow partner that provides consulting, implementation and managed services for the ServiceNow platform. The acquisition strengthens Synoptek's ServiceNow capabilities and expands its application-managed services and co-managed ServiceNow offerings; Rapid Technologies' leaders will join Synoptek as managing directors of its ServiceNow practice.

Ascend Technologies has acquired the managed IT and security services division of Stratosphere Networks in a carve-out that expands Ascend’s presence and managed services capability in the Chicago area. Stratosphere will retain its IT project, voice services and consulting businesses while Ascend — backed by private equity partner M/C Partners — onboards the transferred managed services staff and clients.

Nomura Research Institute (NRI) has agreed to acquire Core BTS, a U.S.-based IT consulting and managed services provider, from Tailwind Capital's Fund III. The deal expands NRI's technology consulting, Microsoft and Cisco capabilities and scale in the United States; Core BTS CEO Paul Lidsky will remain with the company following the transaction.

Portage CyberTech Inc., a cybersecurity and digital-trust subsidiary 53% owned by Converge Technology Solutions Corp., has acquired OPIN Digital Inc., a Canadian digital agency focused on Drupal-based web, mobile and app experiences. The deal closed for $4.67 million in cash plus up to $1.56 million in earn-outs; OPIN had trailing twelve-month revenue of approximately $3.6 million as of September 30, 2021.

Accenture has acquired the consulting practice of Headspring, a cloud-native platform engineering and modernization firm based in Austin, Texas. The deal brings approximately 90 Headspring cloud experts into Accenture Cloud First to expand Accenture's platform engineering and cloud-native capabilities; terms were not disclosed.

Atos has completed the acquisition of Toronto-based AppCentrica, a cloud application and Salesforce consulting firm, adding about 90 cloud and Salesforce experts to its Canadian operations. The deal expands Atos’s cloud application, Salesforce and MuleSoft capabilities and supports growth in North American enterprise clients, particularly in financial services and manufacturing.

intive has acquired Spark Digital, a founder-led digital consulting, design, and development provider serving Media & Entertainment and EdTech clients, to strengthen intive’s North American and LATAM digital transformation capabilities. The transaction gives intive a full U.S. footprint and adds Spark Digital’s nearshore delivery, AI/ML, data analytics and cloud capabilities; Spark Digital will continue to be led by co-founders Chris Cali and Francisco Amadeo. Canaccord Genuity served as exclusive financial advisor to Spark Digital.

Horizon Capital has made a significant growth investment in BP3 Global to accelerate the company's organic growth and to fund a buy-and-build strategy. The capital package (with debt financing provided by DunPort Capital Management) will support BP3's plans for multiple acquisitions and expansion of its intelligent automation services across new markets. Founders Lance Gibbs and Scott Francis will remain in leadership roles while Horizon takes board seats.

Meriplex announced the asset acquisition of Colorado-based managed services provider Optimum Networking to expand Meriplex’s physical presence and service capabilities in Colorado. The deal brings Optimum’s managed IT, network security, cloud and VoIP services and workforce into Meriplex’s MSP/MSSP platform to provide local, 24x7 managed technology support for regional and Oil & Gas clients.

AEA Investors LP's middle-market private equity team has acquired Hero Digital Holdings, LLC from CI Capital Partners. The investment will support Hero Digital's expansion of digital offerings, next-gen technology capabilities, and geographic growth while the existing management team, led by CEO David Kilimnik, remains in place.

Concentrix Corporation agreed to acquire PK, a global CX design and engineering firm, in a transaction valuing PK at approximately $1.6 billion. Funds managed by The Carlyle Group (which held a majority stake since 2016) will sell their stake; PK — with more than 5,000 employees across ~20–22 cities in four countries — was expected to contribute roughly $530 million of revenue and $85 million of adjusted EBITDA in the first full year post-close. The deal was announced in November 2021 (expected close in Concentrix's first fiscal quarter of 2022) and subsequently closed at the end of December 2021.

HTEC Group, a global consulting and software engineering firm, acquired Momentum Design Lab, an award-winning Silicon Valley product design studio, to strengthen its digital product design capabilities. The deal expands HTEC's end-to-end offering by combining Momentum's UX/CX and product design expertise with HTEC's engineering talent and global delivery footprint.

Globant has entered into a definitive agreement to acquire Navint, a North America–based lead-to-revenue Salesforce partner with deep expertise in Revenue Cloud, CPQ, billing and monetization. The acquisition (an exit for Boathouse Capital) reinforces Globant's Salesforce Studio capabilities and expands its capacity to deliver quote-to-cash and revenue operations services to enterprise clients.

Baton Rouge-based General Informatics has acquired Charlotte-based managed services provider Versiant, expanding its geographic footprint into the Carolinas and broadening its capabilities in data analytics and security. The deal is an add-on to General Informatics (a portfolio company of Rosewood Private Investments); Versiant CEO Edward Reade will join General Informatics as a senior vice president and regional manager while other principals are retiring.

Executech, backed by Evergreen Services Group, has acquired Elevate, an IT support provider based in Richland, Washington. The Elevate team (led by CEO Paul Carlisle) will join Executech as the Tri-Cities office, expanding Executech's geographic reach and access to cybersecurity and cloud services.

CompassMSP has acquired the assets of MRW Systems Inc., a Westminster, Maryland-based managed IT services firm. The team and location will be retained and MRW Systems will operate as MRW Systems: A CompassMSP Company, enhancing CompassMSP's coverage in the New York City–Washington, D.C. corridor.

Advanced Mission Solutions, LLC (AMS) has acquired Innovative Management & Technology Services, LLC (IMTS). IMTS is a federal IT services provider with a long history of supporting the FBI and law enforcement; the acquisition is intended to combine complementary capabilities and accelerate growth in the federal/law-enforcement IT services market. Excendio Advisors advised IMTS on the transaction.

Meeting-room technology provider RoomReady has acquired St. Louis–based commercial electronic systems integrator Wired Technologies, Inc. The deal (closed Nov. 12, 2021) brings Wired Technologies' technicians and more than 70 years of local integrator experience into RoomReady to expand its AV and meeting-room services in the Greater St. Louis area.

Private equity firm Columbia Capital has acquired Driven Technologies, a provider of IT services that secures, optimizes and manages multi-cloud infrastructure, applications and data. The acquisition is intended to support Driven's growth initiatives and expand the company's reach across the United States; Driven will continue to operate under its existing name.

Bounteous, a Chicago-based digital innovation consultancy, has acquired Hathway, a California-founded digital growth partner that builds ordering, loyalty and commerce solutions for restaurant and convenience-store brands. The acquisition brings Hathway's NomNom technology, client roster, and product expertise into Bounteous' global delivery model and expands capabilities for restaurant and C‑store digital experiences.

Navisite has acquired EightCloud, a specialty Salesforce consulting company, to expand its enterprise application, data management and cloud services with Salesforce advisory, implementation and managed services. EightCloud — founded in 2011 and with team members in the U.S., Mexico and India — will bring managed Salesforce expertise to Navisite's mid-market and smaller enterprise customer base.

Lincolnshire Management completed an investment in CrossCom National, a U.S.-based provider of IT infrastructure and end-user support services for multi-site retail, grocery, automotive and restaurant customers. The transaction supports Lincolnshire’s strategy to build a platform of national maintenance and service businesses for blue-chip customers; CrossCom will continue to operate under existing management.

Kerv, the LDC-backed cloud and digital transformation services provider, has acquired Gyrocom, a Surrey-based network and security integrator specialising in SD-WAN and SASE. The add-on expands Kerv's managed network and security capabilities and will see Gyrocom operate as Kerv's specialist networking and security division.

Brillio has acquired Standav, a Salesforce consulting and systems-integration firm headquartered in Silicon Valley (Sunnyvale) with a major presence in Dallas, to strengthen Brillio’s Lead-to-Revenue (LTR) and Revenue Cloud services. The deal brings Standav’s quote-to-cash, CPQ and pricing expertise and its delivery centers and ~200+ certified consultants into Brillio’s global services footprint, positioning Brillio as a leading Salesforce Revenue Cloud provider for large enterprise clients.

Accenture acquired ClearEdge Partners, a Boston-area firm specializing in procurement spend management and software asset management, to strengthen its IT spend and procurement capabilities and integrate those services with Accenture's SynOps platform. Terms were not disclosed; ClearEdge brings roughly 100 professionals and proprietary methodologies to Accenture Operations.