Sourcepass Acquires Suite3 To Expand Services
‘It just was a really good match for what we look for…Good technology stack, great geography, right vertical focus, the various cultural alignment on this customer experience,’ says Sourcepass Chairman and Founder Chuck Canton.
Sourcepass, headquartered in New York City, has acquired its second MSP this month, buying Suite3, an IT services and IT consulting company, to continue the goal of building a $500 million managed services business over the next five years.
The deal is part of a planned seven acquisitions Sourcepass is targeting for 2022, Chuck Canton, chairman and founder of Sourcepass, told CRN. Earlier this month, Sourcepass acquired Network Solutions and Technology (NST).
Suite3, headquartered in Easthampton, Mass., provides managed network, cloud migration and management, cyber security and IT support services to more than 6,000 managed customer endpoints and 100,000 managed customer inputs. Its clients span more than eight industries, with a strong focus on financial services.
Canton said there were several reasons for their decision to acquire the company. Suite3, founded in 1987, has had sustainable growth, shares Sourcepass’ culture, great capabilities in the financial services space, and a good stronghold in the Northeastern United States, he said.
“It just was a really good match for what we look for,” Canton said. “We evaluated over 100 MSPs in the last year, but we have 20 that are all actionable right now. And we chose them as the first bolt on to NST. Good technology stack, great geography, right vertical focus, the various cultural alignment on this customer experience.”
Sourcepass will gain 232 clients from Suite3 and 30 employees, to bring its total to about 190 employees total, he said. Canton said this acquisition helps tremendously with Sourcepass’ larger goal.
“When we acquired NST, they became the core platform for Sourcepass,” he said. “Suite3 is now the first acquisition to be integrated into our core platform. The framework used in this integration will become the model we use to integrate and plug in all future assets as we grow. We are integrated Suite3 in a way that will enhance the customer experience.”
Canton said Sourcepass will add 24/7 customer support to Suite3’s clients, additional technology capabilities from their service stack, and provide an interactive mobile app and web portal later this year that they can use to improve their experience.
“Suite3 is super helpful because they have a really good framework to do that successfully,” he said. “And that is something we can repeat on future deals.”
Geographically, the acquisition helps Sourcepass as well.
“It’s going to help us again expand into getting more business in Massachusetts, Vermont, New Hampshire, Rhode Island, and Maine,” he said. “These are all areas that we wanted to get more customers out of and wanted to serve and now we have local feet on the ground to help us do that effectively.”
Canton said that the goal is to be a top 10 managed service provider by the end of this year.
“We want to lead the marketplace and be the leader in the space within time,” he said.
Dave DelVecchio, President of Suite3, will step into a new role as Sourcepass’ vice president of Culture and Communications.
Financial terms of the deal were not disclosed.