Bulking Up: Cal Net Flexes IT Muscles By Purchasing Another MSP

Cal Net Technology Group has bought a fellow Southern Californian MSP to boost its scale and grow its portfolio of solutions.

The Chatsworth, Calif.-based company, No. 454 on the 2016 CRN Solution Provider 500, said its acquisition of Costa Mesa, Calif.-based inhouseIT – Orange County's largest MSP – will provide the company with more depth and breadth of technical expertise.

"Our vision is to empower every small to mid-sized business in Southern California and the Southwest U.S. with the ability to access affordable enterprise-level IT services that enable their businesses," Cal Net CEO James Hwang said in a statement.

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inhouseIT was founded in 1998 and employs between 51 and 200, according to the company's LinkedIn page. Terms of the deal were not disclosed, and Cal Net did not respond to requests for comment.

This is Cal Net's third acquisition in the past two years, as the CRN MSP Elite 150 list member looks to build expertise around everything from managed security and disaster recovery to document management and infrastructure implementation.

The company is probably best known for its implementation and support services practice, which helps clients tackle the complexities of partially or fully outsourced IT and voice systems.

"In order to accelerate the growth of our products and services, we are continuing to look for companies with great technology, talent and a strategy that aligns with ours," Luca Jacobellis, Cal Net president, said in a statement.

Cal Net scored a major win this spring when it joined Microsoft's Cloud Solution Provider program as part of arrangement with master agent World Telecom Group (WTG), through which it is responsible for provisioning, managing, selling, billing and supporting products and services around Office 365 and Microsoft Azure.

InhouseIT, meanwhile, in late 2014 launched incloudIT, a private cloud service that relies on a local data center to enhance speed and flexibility while maintaining a predictable monthly cost.

The company said at the time that a locally based offering would allow customers to come online more quickly and offered them faster and more dependable service than some of the larger players.

"Our clients require an extremely high level of service, so it is important to continue to improve and mature our offering," inhouseIT CEO Glen Ackerman said in a statement. "As inhouseIT grew, we saw the advantages of joining Cal Net to build a truly unique business for clients in the Southern California area."

Cal Net currently work with 1,500 clients, most of which have between 10 and 2,000 employees. inhouseIT, meanwhile, supports more than 400 customers, and targets its incloudIT offering at end users with fewer than 300 employees.