NexusTek and Breakthrough Technology Group have merged, the latest in a series of mergers and acquisitions that have rolled up several managed service providers into one of the nation's largest MSPs.
NexusTek's acquisition of Breakthrough Technology Group, or BTG, was unveiled mid-May, but the deal actually closed in April for an undisclosed sum.
NexusTek's latest deal is part of a move to build a national presence to take advantage of the kind of scale few MSPs can achieve, said Mike Jenner, CEO of the Denver-based company.
The MSP offers a complete set of services, including cloud services, security services, and the virtualization needed to help customers move to the cloud, Jenner told CRN. The company has its own security operations center and its own call center that can handle 80 percent of all customer calls before escalating problems to the engineering team, Jenner said.
"It's very difficult for smaller MSPs to offer the breadth of services we have," he said. "These are some complex offerings. We also have the ability to invest in our operation processes to better provide services to customers. Our customers often tell us their current service provider may not answer the phone, or will get back with help after a few hours or a day."
NexusTek has more than 1,000 customers, giving it the ability to maintain the engineers needed to take care of SMB clients, Jenner said.
"If you have only a few customers, having your own call center is inefficient," he said. "But with our scale, we can make sure our people are not sitting on their hands. Our operations team has experience with scheduling field teams and call centers to make sure customers' waits are short. An engineer that is not busy is expensive. But an engineer that is busy solving customer problems is efficient."
NexusTek started as a Denver-based MSP, and in 2017 was acquired by Abry Partners, a Boston-based investment company. Prior to that, it was owned since 2014 by LightView Capital, a Summit, N.J.-based investment firm.
Prior to its acquisition by Abry, NexusTek had purchased at least three MSP and cloud service providers including the Illumen Group, iPremise, and CyberTrails, Jenner said. BTG is the company fourth acquisition, he said.
"And there's more to come," he said, without further elaboration.
NexusTek has a big focus on bringing managed services and cloud services to SMB customers, Jenner said.
"We think the MSP space is underserved," he said. "The majority of the market is held by 20,000 MSPs. But for HIPAA, PCI, and other compliance requirements, it is very difficult for small MSPs to deliver. We feel a scaled, organized, national service provider can better serve SMB customers around the U.S."
Jeff Kaplan, CEO and founder of BTG, is now serving as NexusTek's chief revenue and strategy officer.