Corporate Finance Associates Worldwide Documents Frenetic pace of mergers and acquisitions

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Analysts described the fourth quarter of 2021 as hot.

Corporate Finance Associates Worldwide, a middle-market investment bank, released its Technology Services M&A Report for the fourth quarter of 2021. Researchers analyzed the volume and overall value of merger deals and acquisitions, providing enterprise value data on publicly traded companies. They found an “extraordinarily high volume of transactions” and described the fourth quarter of 2021 as hot.

Some of the most significant mergers and acquisitions included:

  • American Tower’s acquisition of data center operator Coresite for approximately $10.1 billion.
  • Acquisition by CDW of Sirius Computer Solutions for approximately $2.5 billion.
  • Acquisition of Trace3 by American Securities.
  • Databank’s acquisition of four data centers from data center operator CyrusOne for approximately $670 million.
  • Variant Equity acquired CompuCom from OfficeDepot for approximately $305 million.
  • Wipro acquired cybersecurity consultancy Edgile for $230 million.
  • Acquisition of CompuGain by Unisys for $87.3 million.
  • Merger of the Herjavec Group with the cybersecurity company Fishtech Group.
  • Japan-based Nomura Research Institute acquires cloud solutions provider Azure Core BTS.
  • The Carlyle Group acquires data center operator and hybrid cloud solutions provider Involta.
  • Quisitive acquired cloud solutions provider Azure Catapult Systems for $51.5 million.

The IT services industry followed the general trend with “a freeze in M&A activity when the pandemic shocked capital markets in the second quarter of 2020, followed by a robust rebound for a few quarters until a peak in fourth quarter of 2021,” the report said.

Cloud and Containers/Kubernetes

Analysts suggest that when private equity firms execute acquisitions with large companies, they reveal priorities and technologies that may reign supreme in the future. These technologies are often developed first for the US government. Several of the companies acquired in the cloud space in the fourth quarter strengthen the federal government.

  • European consultancy Capgemini has acquired Maryland-based VariQ, an AWS and Azure cloud solutions provider that serves the US government.
  • Montreal-based CGI has acquired Maryland-based Array Holding Company, an AWS and Azure partner that provides digital modernization services to the US Department of Defense.
  • Private equity firm Washington Harbor Partners has acquired suburban Washington DC-based AWS cloud solutions provider CollabraLink, a company that serves the US government.

Learn more about other cloud acquisitions here.

cyber security

Channel Futures recently covered acquisitions made by Cerberus Cyber ​​Sentinel, 11:11, and Wipro, as well as Herjavec Group’s merger with Kansas City-based cybersecurity solutions provider Fishtech Group.

Other mergers and acquisitions that materialized in the last quarter include:

  • Globant has acquired Atix Labs, a professional services company that provides blockchain and crypto solutions in the United States and South America.
  • GoSecure, a Montreal-based managed detection and response (MDR) solutions provider, has acquired Covail, an Ohio-based cybersecurity solutions provider specializing in artificial intelligence, automation and machine learning.
  • IBM has acquired Dutch company ReaQta, a threat detection and response platform.
  • Kroll has acquired Security Compass Advisory, a Toronto-based enterprise cybersecurity advisory firm specializing in Azure and AWS.
  • Chicago-based managed services and professional services firm Netrix has acquired Philadelphia-based cybersecurity solutions provider BTB Security.
  • Japanese company Itochu International invested $31.5 million in North Carolina-based MSSP SilverSky in October.
  • In early January 2022, SilverSky acquired Massachusetts-based Cygilant, a cybersecurity-as-a-service provider with a security operations center in the UK.
  • Florida-based cybersecurity and blockchain backup company Sollensys has acquired Arkansas-based Celerit, a provider of managed network and cybersecurity solutions that focuses on the financial services industry.

MSP

Private equity continued to show the love of MSPs in 2021. We reported on some notable mergers and acquisitions in the fourth quarter, including a strategic partnership between New Charter Technologies and Spokane, Washington-based Exbabylon, a direct cloud solutions provider from Microsoft. Channel Futures also covered Foxborough, Mass.-based Thrive’s acquisition of Alabama-based InCare Technologies, a managed services provider focused on the healthcare industry.

Other MSP mergers and acquisitions include:

  • Ontario-based MSP Corp has acquired two Canadian MSPs.
  • Connecticut-based CompassMSP has acquired Maryland-based managed services provider MRW Systems.
  • Louisiana-based managed services provider General Informatics has acquired Charlotte, North Carolina-based MSP Versiant and Waco, Texas-based managed services provider Unicom Technologies.
  • Domain Technology Partners, a portfolio company of private equity firm Frontenac, completed a merger with managed service providers Compudyne, ProviDyn and MyITpros.
  • MSP, based in Portland, Maine, has logically acquired MSP Halski Systems, based in Georgia, a company of approximately 50 employees.
  • Meriplex, a Houston-based provider of managed cybersecurity and SD-WAN solutions, has acquired Boston-based Reliable IT, a managed services provider focused on the healthcare and financial industries, and Optimum Networking, Colorado-based managed services provider focused on oil and gas. industry.
  • Arizona-based Cerberus Cyber ​​Sentinel acquired the following MSPs and MSSPs in Q4 2021: New Jersey-based managed security service provider (MSSP) Red74, New Jersey-based MSP Atlantic Technology Systems and the MSSP Arkavia based in Chile.

For more on the fourth quarter M&A outcome for resellers, read the report from Corporate Finance Associates Worldwide.

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