12 Massive M&A Deals Reshaping The Channel: August 2016

The Channel Goes Global

Solution providers were itching for capabilities outside the U.S. last month, with seven of the acquired firms or entities based in Australia, Canada, Norway or the United Kingdom.

The channel was also hungry for particular technological skills, with five of the acquired firms specializing in cloud and four others having some expertise around security. Meanwhile, five of the acquiring firms can be found in the top 105 of the 2016 CRN Solution Provider 500.

Among the U.S.-based acquisition targets, three are based on the West Coast and two are based in the South.

Acquisitions are ranked based on the total number of employees at the firms being acquired.

12. Wheelhouse IT

Company acquired: Untangled Solutions

Head count: 6 employees

Annual revenue: Not disclosed

Purchase price: Not disclosed

Date of announcement: Aug. 1

Managed services provider Wheelhouse IT acquired health-care specialist Untangled Solutions to boost its health-care offerings.

The acquisition helps Fort Lauderdale, Fla.-based Wheelhouse IT better navigate state and federal security and privacy regulations thanks to the tight focus that Los Angeles-based Untangled Solutions has in that area, allowing Wheelhouse to more directly engage with health-care organizations.

The acquisition also expanded Wheelhouse's national reach to Iowa and California, where Untangled has operations.

11. Simpatico Systems

Company acquired: Adage IT

Head count: 7 employees

Annual revenue: Not disclosed

Purchase price: Not disclosed

Date of announcement: Aug. 24

Simpatico Systems acquired Adage IT to expand its reach into the Los Angeles area.

The new partnership will make it possible for Valencia, Calif.-based Adage to provide Lubbock, Texas-based Simpatico's surveillance, life safety, audio, visual and security technology to Adage's existing customer base.

Simpatico designs, installs and manages IT, security and audio/visual solutions for businesses.

10. CTech Consulting Group

Merger partner: BackupPlan

Head count: 1-10 employees

Annual revenue: Not disclosed

Purchase price: Not disclosed

Date of announcement: Aug. 10

Calgary, Alberta-based CTech Consulting Group said it has merged with business continuity specialist BackupPlan of Calgary to add enhanced backup solutions for both new and existing clients.

After closing, CTech will be adding BackupPlan's backup assessment and audit, backup security report, system monitoring and recovery testing technology.

CTech will also get Calgary, Alberta-based BackupPlan's entire expert full-time staff, each of whom have a minimum of 18 years of experience in disaster recovery and backup.

9. Neverfail

Company acquired: Vertiscale

Head count: 11-50 employees

Annual revenue: Not disclosed

Purchase price: Not disclosed

Date of announcement: Aug. 3

Austin, Texas-based cloud infrastructure vendor Neverfail acquired secure Workspace-as-a-Service (WaaS) remote access platform developer Vertiscale in a move to build out its cloud-based services portfolio for MSP customers.

The acquisition is a good fit for both companies, according to Chris Wiser, Neverfail's MSP channel chief, because Vertiscale's WaaS offering is almost tailor-made for Neverfail's focus on cloud management, security and continuity systems.

Cloud service prices in the cloud marketplace are declining in "a race to zero," Wiser said, which led the company to this acquisition so it could differentiate its offering with Vertiscale's secure WaaS platform.

8. CompuVision

Merger partner: Savvia

Head count: 11-50 employees

Annual revenue: Not disclosed

Purchase price: Not disclosed

Date of announcement: Aug. 17

St. Albert, Alberta-based CompuVision and Edmonton, Alberta-based Savvia joined forces to bring a comprehensive portfolio of managed IT, cloud computing and technology advisory services to clients across North America.

The two companies worked together on five major projects over the past year, according to Savvia CEO Lindsay Dodd.

The combined company will adopt the CompuVision name and plans to grow its total headcount from 120 to 135 by the end of 2016. The combined company will have offices in Edmonton, Calgary, Vancouver and Houston.

7. CompuCom

Entity acquired: Extensys' IoT Business

Head count: 51-200 employees (all of Extensys)

Annual revenue: Not disclosed

Purchase price: Not disclosed

Date of announcement: Aug. 19

CompuCom acquired the Internet of Things division of Extensys to advance its ability to deliver smart solutions to new and existing clients.

Combining Tampa, Fla.-based Extensys' deep IoT expertise with Plano, Texas-based CompuCom's next-generation portfolio around end-user computing, cloud technology services and service experience management aims to give clients choice as they look for cost-efficient ways to maximize the opportunity around IoT.

CompuCom, No. 23 on the 2014 CRN Solution Provider 500, has led a wide range of successful IoT implementations in everything from building management systems, sensor management and unified video and communications, to health-care, retail, local government and education.

6. Deloitte

Company acquired: Integrity-Paahi Solutions

Head count: 51-200 employees

Annual revenue: Not disclosed

Purchase price: Not disclosed

Date of announcement: Aug. 2

Deloitte purchased major managed security services player Integrity-Paahi Solutions (IPS), adding its fourth managed security operations center to meet growing demand for cybersecurity services.

The New York-based company, No. 16 on the 2016 CRN Solution Provider 500, said bringing IPS on board will establish a new cybertechnology reselling and integration practice, making Deloitte a one-stop shop for both security software and insight.

IPS' Vancouver headquarters will expand Deloitte's reach in Western Canada and bolster the firm's global offering of around-the-clock managed security services.

5. Insight Enterprises

Company acquired: Ignia

Head count: 90 employees

Annual revenue: Not disclosed

Purchase price: Not disclosed

Date of announcement: Aug. 31

Insight Enterprises purchased Microsoft's 2014 Australian Enterprise Partner of the Year to strengthen its digital transformation capabilities around cloud, mobility and business analytics.

The Tempe, Ariz.-based company, No. 15 on the 2016 CRN Solution Provider 500, said its acquisition of Perth, Australia-based Ignia will strengthen Insight's consulting services for customers in the utilities, health-care, education and government verticals.

Ignia was the 22nd fastest-growing company in the Australian IT channel in both 2014 and 2015, according to CRN Australia. The company was also selected last year as one of Microsoft's nine inaugural Australian Internet of Things partners.

4. ScanSource

Company acquired: Intelisys

Head count: 120 employees

Annual gross commissions: $120 million

Purchase price: $183.6 million to $233.6 million

Date of announcement: Aug. 8

ScanSource agreed to buy master agent Intelisys Communications in a deal aimed at accelerating recurring revenue telecom and cloud services among its traditional communications resellers.

The deal represented a stunning bid by the $3.2 billion, Greenville, S.C.-based distributor with a traditional on-premise VoIP and videoconferencing business to disrupt the value-added distribution landscape.

ScanSource paid $83.6 million in cash up front for Intelisys, and is expected to pay an additional $100 million to $150 million in earn-out payments based upon Petaluma, Calif.-based Intelisys's performance in the four years following closing.

3. ManpowerGroup

Company acquired: Ciber Norway

Head count: 130 employees

Annual revenue: $40.9 million

Purchase price: $7 million

Date of announcement: Aug. 24

Greenwood Village, Colo.-based Ciber, No. 43 on the 2016 CRN Solution Provider 500, sold off its second non-strategic business unit to ManpowerGroup last month.

Milwaukee-based ManpowerGroup said it acquired the business -- officially known as Ciber Norge AS -- to bolster its professional resources and project workforce solutions arm, Experis. Manpower has 30 locations and employs more than 20,000 in Norway.

The deal comes as part of Ciber's plan to trim a number of its non-strategic business units from the company. Ciber sold its Netherlands-based business to the ManpowerGroup in June for $25 million.

2. Accenture

Company acquired: Redcore

Head count: 130 employees

Annual revenue: Not disclosed

Purchase price: Not disclosed

Date of announcement: Aug. 22

Dublin, Ireland-based Accenture, No. 2 on the 2016 CRN Solution Provider 500, acquired Melbourne, Australia-based security services company Redcore to expand its capabilities around government defense and Internet of Things technology.

The acquisition is being made to increase Accenture's work with the Australian federal government and improve its security capabilities in the manufacturing, medical and automotive industries as it continues to create an end-to-end IoT solution for clients.

Redcore's offices in India, New Zealand, the Philippines and Singapore were merged into Accenture's own operations in those countries, bolstering the company's security ranks.

1. Datapipe

Company acquired: Adapt

Head count: 200 employees

Annual revenue: Not disclosed

Purchase price: Not disclosed

Date of announcement: Aug. 17

Amazon Web Services pioneer Datapipe bought the United Kingdom's fastest-growing MSP to beef up its overseas capabilities, skill sets and talent around cloud services.

The Jersey City, N.J.-based company, No. 105 on the 2016 CRN Solution Provider 500, said its acquisition of London-based advanced AWS consulting partner Adapt will add employees capable of supporting physical infrastructure, managed public cloud and professional services.

Although Datapipe has had a presence in London for more than a decade, acquiring a company with more clout and name recognition inside the United Kingdom will make Datapipe more competitive in the request for proposal (RFP) process.