MetTel, a New York based communications service provider, has announced that it has acquired Thrive Networks, the managed services business unit of office supply retailer Staples. Terms of the acquisition were not disclosed.
“We are excited to bring Thrive’s deep bench of engineering talent to MetTel’s customer base. With this partnership, we will be able to offer Thrive’s wide range of managed service capabilities to our customers to provide end-to-end networking and managed service solutions,” said Marshall Aronow, Chief Executive Officer, MetTel. “With a national presence and strong focus on customer support and retention, the company’s mission and values mirror our own which made this combination so attractive. MetTel prides itself on providing innovative services and products to the communications industry. With the addition of Thrive Networks, we know we will be able to continue to provide the best service from coast-to-coast.”
Analysis
The acquisition cannot be viewed in an isolated manner, but instead, must be analyzed and understood in the context of other office/electronic retailers and their brief flirtations with managed services. I am referring, of course, to BestBuy and their acquisition and then sale of MSP MindShift.
Now, the underlying reasons why both Staples and BestBuy initially made these purchases of MSP companies is a matter of public record. Expanding into new service areas, tapping into new business customers with valuable business grade IT services, are just a few of the obvious motivations behind these non-traditional acquirers of managed services firms.
The reason why these two companies sold their MSP businesses is more interesting and can offer some insight into how managed services business units are being used in larger corporate structures. First, I would say that it's obvious to anyone looking at these two retailers that their attempts at managed services were not a success. I will state that the MSP companies they purchased are likely not at fault here. Instead, there was probably an oversimplification of how an MSP business operates and how it should be integrated into a larger corporate structure, especially that of a retailer.
