National managed service provider Magna5 Monday unveiled the acquisition of the U.S. assets of Canadian MSP Apogee IT services.
With the acquisition, Magna5 gets a team of 25 people in the Pittsburgh and Boston areas with expertise in managed IT and cybersecurity services, said Bob Farina, CEO of Magna5, which is based in Pittsburgh.
Magna5, which was founded as a telecom provider eight or nine years ago before acquiring its first MSP in May 2021 and then selling its telecom business in November 2021, has now purchased five MSPs, including the U.S. business of Apogee, Farina told CRN.
[Related: Thinking Of Buying Or Selling An MSP? Here Are 6 Tips From Experts]
The company’s customer base includes financial services, healthcare, manufacturing, and non-profit businesses. It is fully audited for SOC-2, HIPAA, and PCI.ADVERTISEMENT
https://e201027cd410588580042de0d63bc644.safeframe.googlesyndication.com/safeframe/1-0-40/html/container.html
Magna5, which is backed by NewSpring Holdings since that company acquired a majority in March 2015, has become a platform MSP dedicated to building a larger managed services business via organic growth and acquisitions, Farina said. NewSpring Holdings is part of Radnor, Pa.-based NewSpring Capital.
“We don’t say we are rolling up MSPs,” he said. “We are building a fully integrated platform.”
Toronto, Ontario-based Apogee is continuing to do business in Canada, Farina said.
“We thought purchasing the Canadian business would be a distraction,” he said. “They have a lot of smaller clients. I’ve run multinational businesses in the past, but this is not the right timing for us.”
Magna5, which provides managed IT, cyber security, and cloud-focused services, did not disclose the cost of the acquisition.
Magna5 will integrate its new Apogee team in much the same way it has for all its acquisitions, Farina said.
“We don’t want to lose the brand awareness of Apogee,” he said. “So it’s a gradual process. We are very careful to not disrupt services. We will support its clients with the same people, but add the wider support of Magna5. And we have a 7-by-24 operation, which is something smaller MSPs usually don’t have. We have our own NOC (network operations center) and SOC (security operations center), and a full cybersecurity team.”
Magna5, which primarily does business in the northeastern U.S., will continue to acquire smaller MSPs, Farina said.
“We’re looking for at least two more in the U.S. this year,” he said. “We may spread out a little more geographically, but not as far as areas like California yet.”LEARN MORE: Mergers and Acquisitions | Professional Services
Joseph F. Kovar is a senior editor and reporter for the storage and the non-tech-focused channel beats for CRN. He keeps readers abreast of the latest issues related to such areas as data life-cycle, business continuity and disaster recovery, and data centers, along with related services and software, while highlighting some of the key trends that impact the IT channel overall. He can be reached at [email protected].
RELATED CONTENT
Texas-Based The 20 MSP Eyes More Deals After Two AcquisitionsDXC Earnings Report: Acquisition Talks Still On, Revenue Still SlidesDXC Earnings Preview: 4 Big Things To Focus OnServiceNow Introduces New President, COO As It Sets Strong Guidance For 2023CompuCom CEO Kevin Shank: ‘I Have Unfinished Business Here’ TO TOPADVERTISEMENT