Channel Insider is committed to providing you with the most up-to-date information in the managed services provider space, including the big moves channel businesses are making with mergers and acquisitions (M&A).
In recent years, organizations have bumped up against challenges due to the economic difficulties caused by the pandemic. As companies begin to recover in the post-pandemic, new digital landscape, the number of acquisitions is ticking upward since 2020.
ConnectWise acquires Axcient
Recently, Axcient, a Business Continuity and Disaster Recovery (BCDR) solutions provider, announced that they have agreed to be acquired by ConnectWise, an IT software and services provider, in an effort to become a leading provider of data protection for the MSP market.
“Together ConnectWise and Axcient will accelerate our mission of keeping businesses running and helping MSPs both protect their clients and run more profitable businesses. Actions speak louder than words and we look forward to continuing to earn your partnership,” Axcient stated in a press release.
ConnectWise acquires SkyKick
ConnectWise continues to make moves by also acquiring SkyKick, a cloud backup and management software company.
“By integrating Axcient and SkyKick into the ConnectWise portfolio, we offer MSPs a complete technology stack that improves data protection and cybersecurity. This integration empowers MSPs to scale their business while safeguarding clients with confidence,” said CEO of ConnectWise Jason Magee.
The 20 acquires Collabrance
Leading MSP growth platform, The 20, announced in August that it would be acquiring Collabrance, a managed IT services provider.
“This marks a key step in The 20’s acquisition strategy. We cast our net a little wider to find a like-minded master MSP that will augment our growth platform, drive continuous improvement, and uphold our sky-high standards for excellence in service delivery,” said Tim Conkle, The 20’s CEO.
This latest addition marks the company’s ninth in 2024, and 35th since it began to pursue mergers and acquisitions more aggressively in the latter half of 2022. Earlier this year, The 20 made acquisitions of DriveTech Autos, Accurate Computer Solutions, Blue Cactus Consulting, Tech Junkies MSP, Matrix Solutions, Level 10 Technology, Sublime Computer Services, and Data Tech Cafe.
“Our fundamental strategy remains the same: bringing quality MSPs on board to drive continuous improvement and uphold our sky-high standards for excellence in service delivery nationwide,” said Conkle.
Spirit Technologies acquires Forensic IT
In August, Spirit Technologies announced the acquisition of Forensic IT as it seeks to continue its new business strategy of pivoting to cybersecurity solutions.
Forensic IT, an incident response and digital forensic cybersecurity service provider, will integrate its capabilities — particularly its 24/7 SOC managed by Infotrust — to allow Spirit Technologies to deliver services specifically tailored to meet the needs of mid- to enterprise-level businesses in the private and public sector.
“With the increasing frequency and sophistication of cyber attacks, our expanded capabilities will allow us to better safeguard our customer’s digital assets, ensuring resilience and continuity in the face of any cyber incident,” Spirit Group Managing Director Julian Challingsworth said in a statement.
AMD acquires ZT Systems
In a move to send ripples through the AI market, AMD has acquired ZT Systems for a whopping $4.9 billion to boost its AI and cloud computing capabilities.
ZT Systems will join AMD’s Data Center Solutions Business Group to bolster the chipmaker’s position in the cloud market. AMD will combine its AI chips with ZT System’s expertise in building high-performance data center infrastructure.
“Our acquisition of ZT Systems is the next major step in our long-term AI strategy to deliver leadership training and inferencing solutions that can be rapidly deployed at scale across cloud and enterprise customers,” said AMD chair and CEO Lisa Su in a statement, adding that AI is the company’s “No. 1 strategic priority.”
HPE acquires Morpheus Data
HPE has acquired Morpheus Data in an effort to enhance its hybrid cloud capabilities and expand its HPE GreenLake offering.
Morpheus Data, a hybrid cloud management provider, will see its management platform for optimized cloud solutions integrated with HPE’s hybrid cloud capabilities, allowing HPE to become the first vendor to offer a full stack of hybrid cloud management solutions that covers infrastructure, platform, and application management.
“With the acquisition of Morpheus Data, we will take the next major leap to make HPE GreenLake cloud the de facto platform for innovating across hybrid IT,” said Fidelma Russo, executive vice president and general manager, hybrid cloud, and CTO at HPE, in a statement.
Fulcrum IT Partners acquires Fortress Security
In an effort to enhance its cybersecurity services with advanced AI and SOC capabilities for global expansion, leading international IT solutions provider Fulcrum IT Partners made the acquisition of leading cybersecurity firm, Fortress Security Risk Management, to expand their security service offerings and provide clients with enhanced real-time monitoring and management of their cybersecurity posture.
Fulcrum will integrate its hybrid AI capabilities with Fortress’ cybersecurity and service desk offerings to strategically enhance the company’s ability to deliver data-driven cybersecurity and IT support solutions to clients on a global scale.
Climb Global Solutions acquires Douglas Stewart Software & Services (DSS)
Value-added global IT channel company Climb Global Solutions, Inc. acquired DSS in early August of this year to boost both its presence in North America and product portfolio.
DSS is a separate division of the privately held Douglas Stewart Company and is a leading specialty distributor focused on SaaS solutions for education customers.
The move will help Climb Global Solutions advance its shared cloud marketplace initiatives as it integrates DSS into its platform.
“Today, we are continuing with our organic growth by adding scale and expertise to our North American operations along with 20 new vendor partners including Adobe, Go Guardian, and Incident IQ. DSS has delivered consistent growth through a subscription-based software licensing model, built on an 85%+ retention rate for its strategic vendor partners’ offerings,” said Climb CEO Dale Foster at the time of the acquisition.
Check Point Software acquires Cyberint
Check Point Software Technologies, a leading cybersecurity platform provider, has acquired Cyberint Technologies, a provider of External Risk Management solutions.
The maneuver will enhance Check Point’s SOC capabilities and expand its managed threat intelligence offerings. Cyberint’s advanced capabilities will be integrated into Check Point’s Infinity Platform for collaborative threat prevention and be available as a managed service through Check Point Infinity Platform Services.
“[Cyberint’s] solution aligns perfectly with our vision of collaborative threat prevention and enhances our SOC capabilities,” stated Sharon Schusheim, Chief Services Officer at Check Point Software Technologies. “We will be able to turn identified risks into autonomous preventative actions and work collaboratively across Check Point and third-party security products to contain compromised assets and mitigate external exposures.”
Magna5 acquires FullScope IT
In an effort to expand its national footprint and strengthen its managed IT services offerings, Magna5, a leading managed IT, cybersecurity, and cloud solutions provider, has acquired FullScope IT, a managed IT services business.
The acquisition will allow Magna5 to enhance its ability to deliver comprehensive support and protection to clients, expand its reach across the U.S., and significantly increase its operational density in the northeast and southwestern regions of the United States.
FullScope’s investment in Cybersecurity Maturity Model Certification (CMMC) L2 compliance will integrate seamlessly with Magna5’s security portfolio.
M&A activity is just one of the strategies Fulcrum IT Partners leverages to grow its offerings. Read more about the growth strategy in our interview with Kyle Lanzinger.