ConnectWise’s Jason Magee: An ‘IPO Is An Option’

‘We’ve been doing a lot over the years to get in a good place operationally. And when I am asked or tapped on the shoulder to go do something, if they say IPO then that’s what I’ll go do,’ says ConnectWise CEO Jason Magee.

After speculation of a possible sale earlier this year of vendor ConnectWise, CEO Jason Magee said taking the company public is an option.

But no moves have been made.

“We’ve been doing a lot over the years to get in a good place operationally,” Magee told CRN. “And when I am asked or tapped on the shoulder to go do something, if they say IPO then that’s what I’ll go do.”

In June, Magee told CRN that ConnectWise was in a “time horizon” to be acquired and that it’s not a matter of it, but when.

The 3,100-employee vendor was acquired by Thoma Bravo in 2019 but earlier this year sources close to the deal said a bidding war had been heating up for control of the Tampa, Fla.-based MSP-focused IT management software maker.

“The talk went from ‘ConnectWise is being sold’ to ‘PEs are in their house having meetings day in and day out, and they’re all in there bidding,” one source told CRN in April, noting that Bain Capital was a strong candidate at the time.

And ConnectWise may also be eyeing a company to buy as well.

“We chat with companies all day,” Magee said. “There’s a good pipeline and it just comes down to good strategic synergy, a good culture fit and if can we make the numbers work. We’re not short of that opportunity, so we’ll see.”

CRN spoke to Magee more about the possibility for an IPO, acquisitions and what partners need to know.

Click through the slideshow to read the interview.

When we spoke in June, you said that ConnectWise was in a time horizon to be acquired. In my story I had an anonymous sources say that there is a possibility of an IPO. Is there any truth to that?

When you’re in a time horizon or when you look at the potential of an exit, you stay the course, grow the business and keep doing what you’re doing. You could sell to another big player, to another private equity firm or you could go IPO. I would say most of those options would probably be on the table when the time is right.

We’ve been doing a lot over the years to get in a good place operationally. And when I am asked or tapped on the shoulder to go do something, if they say IPO then that’s what I’ll go do. I’m excited to continue the journey and do what ConnectWise set out to do. We update our strategic plan every year on where we’re taking it three years from now, not just from a ConnectWise standpoint but from an industry standpoint. We also make investments in where we can help MSPs do better down the road. So sure, IPO is an option.

Is ConnectWise still in the time horizon to make a move?

PE firms have a three-to-five-year hold, and we’re at year four so I would say yes to your question. PE firms are in the business of buying and selling companies, that’s what they do. I get that this industry is big on, ‘Who [is ConnectWise] going to be sold to?’ But for me, I put a lot of work in over the last few years. From the CEO role from this point forward, I’m looking to continue the journey, do a lot of good and bring the IT nation and industry forward.

Whether ConnectWise is eventually acquired or goes public, no one likes change. So what is your message to partners in that regard?

We have a really good three-to-five-year plan. We’ll continue to operate under that plan and deliver on what is needed for ConnectWise being a healthy company and for what the industry needs us to be. Look, we’re not perfect. We strive to do better in the areas that were less than perfect, and we’ll continue to do that. But make no mistake about it, we’re in a pretty good place in terms of healthiness from a company. I fully expect that me and my team will be here and we will continue on that journey.

I’ve heard rumblings that there's a possibility that ConnectWise will be acquiring a company soon. Is there any truth to that?

Look, all of my competitors, we’re all chatting with companies. We chat with companies all day. There’s a good pipeline and it just comes down to good strategic synergy, a good culture fit and if can we make the numbers work. We’re not short of that opportunity, so we’ll see.

Are you eyeing any companies pretty heavily?

We chat with a lot. The message I would say is we’re definitely a buyer. I could be having a great conversation with three companies, but will we come to terms? That’s why it gets tricky. We’re a buyer for sure and we’re always having multiple conversations at any given time.