Spotlight

An archive of past spotlight issues.

 

The martinwolf team tracks noteworthy mergers and acquisitions, and offers
commentary on issues that impact our industry. Here is an archive of past

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"Something clicked in May and we saw a rush of PE firms asking us about MSPs and MSSPs."

Surge in Private Equity Demand for Managed Service Providers

Demand for Managed Service Providers (MSPs) and Managed Security Service Providers (MSSPs) has surged to new highs as Private Equity (PE) firms continue to be attracted to the recurring revenue model.

 

Tim Mueller President martinwolf

martinwolf President Tim Mueller was cited in Karishma Vanjani’s article on PE Hub regarding the unprecedented rise in PE demand for MSPs and MSSPs. Mueller explains that the addition of security services to an MSP’s portfolio can grow recurring revenue to over 80 percent—a fact that has driven significant interest among buyers across the martinwolf and IT ExchangeNet network.

 

Deal multiples for MSPs and MSSPs continueto increase as some firms with significant recurring revenue are seeing multiples above 10x their 12-month adjusted EBITDA.

 

“Something clicked in May (2020) and we saw a rush of PE firms asking us about MSPs and MSSPs. Our email inbox just started blowing up; we asked each other ‘are you seeing what we are seeing?’” Mueller added.

 

Vanjani’s piece highlights the “dizzying rate” in which PE firms are acquiring MSPs and MSSPs. Read the full piece here, and if you have any questions about what this means for your business,contact Colin Riley.

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18 Oct 2021

CDW To Acquire Sirius Computer Solutions

Financial Information ($USD) Enterprise Value: $2.5 Billion EV/REV: 1.23x Transaction Details CDW Corporation today announced it has entered into a definitive agreement to acquire Sirius Computer Solutions, Inc from an affiliate of Clayton, Dubilier & Rice for $2.5 billion in cash. Sirius, a leading provider of secure, mission-critical technology-based solutions, generated 2020 net sales of $2.04 billion with approximately 3,900...

29 Sep 2021

H.I.G. Capital Announces Sale of Trace3

Financial Information Not Disclosed Transaction Details H.I.G. Capital announced that one of its affiliates has entered into a definitive agreement to sell Trace3, a premier provider of IT solutions and services, to affiliates of American Securities. Financial terms of the transaction are not being disclosed, but the press release cites Trace3 revenue of $1.4 billion....

02 Aug 2021

TowerBrook Capital Partners Makes Strategic Investment in EisnerAmper LLP

Transaction Details TowerBrook Capital Partners, an international investment management firm, has made a strategic investment in EisnerAmper, one of the largest professional services firms in the world, offering premier accounting, tax and business advisory services. The firm will now operate two divisions: EisnerAmper LLP, a licensed CPA firm, will provide attest services; and Eisner Advisory Group LLC,...