ClearPoint Acquisition Continues Pattern of Mature MSPs
There are mature MSPs, and there is everyone else. All M&A discussions should be viewed in this context to understand the managed services profession fully.
Today, another "mature" MSP was acquired (by an MSP), further "consolidating" the mature MSP market segment. Scottsdale, AZ based AccountabilIT purchased ClearPointe Technologies based in Little Rock, Arkansas. ClearPointe is a managed services provider specializing in cloud‐based transformations, migrations and managed services.
ClearPointe marks the second acquisition for AccountabilIT since its founding in August of 2016. AccountabilIT is a managed services firm with a focus on cybersecurity.
“This acquisition is critical in providingAccountabilIT with additional scale and experience needed to maintain our position in the industry,” said Chuck Vermillion, AccountabilIT’s CEO and founder. “We are thrilled to add ClearPointe’s leadership to our organization. Our strategy will continue to be the same; care about our customer’s success as much as we care about our own company. We will lead this market, one customer at a time.”
Since 2000, ClearPointe has offered managed services for data center environments around the world, and currently manages servers, applications, and connectivity in both public and private clouds, hybrid clouds as well as on‐premises data centers.
“There are tremendous synergies by combining our two organizations,” said Jeff Johnson, CEO and founder of ClearPointe. “ClearPointe is a leader in Microsoft centric services including Azure‐based solutions and Azure management. AccountabilIT’s competencies in application management, database administration, Linux administration, and managed security are the perfect complement to our services.”
Financing for the transaction was provided by WestView Capital Partners, a Boston based private equity firm. Vermillion’s previous firm was WestView’s initial investment after its founding in early 2005.
MSP Consolidation or Something Else?
Elsewhere on this site, we have discussed our views on the claims of managed services consolidation. While there are always M&A transactions taking place, there is no reliable data of a widespread consolidation or roll-up of MSPs due to a surplus of supply or a lack of demand.
To the contrary, there is continued growth in managed services demand on the part of customers, and there is a surprisingly small number of qualified MSPs capable of performing the work, despite a global community of MSPs which at least numbers in the tens of thousands.
M&A transactions, like ClearPointe's, demonstrates the demand for higher value, more mature MSPs, especially MSPs who have specialized market verticals. Mature MSPs will always be in demand, whereas less mature (note: this does not mean size) MSPs are immune from any "consolidating" market forces. If there were a surplus of supply, the first targets of a market consolidation would be in the less mature market segments, either through M&A or business failures.
This is just not happening!