Channel goes M&A mad in 2020

The channel is never short of mergers and acquisitions, but it seems like the M&A bug has swept through the IT landscape in 2020.

We typically reserve our M&A round-ups for the end of the financial and calendar years, but given the sheer number of acquisitions in the first two months of 2020, CRN thought it was appropriate to highlight the deals that got the channel talking in January and February.

Click through to see the biggest buys of 2020 so far!

8 January

IT&C acquires Brisbane-based D&G Solutions

Sydney-headquartered MSP Intellectual Technology & Communication (IT&C) started 2020 early buy acquiring Brisbane’s D&G Solutions Group.

The deal expanded IT&C’s presence in Queensland, bolstering its offices in Brisbane and the Gold Coast.

D&G specialises in cloud, managed IT and technology consulting services, with multiple vendor partnerships including HPE, Microsoft, Cisco, AWS, Sophos, Veeam, Datto, among others. IT&C also offers managed IT and consulting services.

Click here to read the full story.

21 January

Next Telecom acquires four NBN resellers

Sydney-based telco Next Telecom acquired Melbourne-based Telecommunications Service Provider Group, bringing with it four NBN resellers.

The acquired companies include Next Business Telecommunications, Business Class Telecom, Nextalk and Wire Networks. The acquisition also includes those companies’ brands, IP and technology.

Next said the acquisition will help “rapidly increase” revenues in Australia and would further expand its corporate offices in Melbourne.

Click here to read the full story.

28 January

Spirit Telecom snaps up Cloud BT

Spirit made its first acquisition of 2020 in January by paying $700,000 for managed IT provider Cloud BT.

Spirit said the acquisition would bolster its cloud based, security managed services that run over its fixed wireless networks

Cloud BT specialises in cloud and security, along with IT consulting and outsourcing. It marks the latest foray into managed services for the telco, and wasn’t the first MSP Spirit acquired in 2020.

Click here to read the full story.

31 January

Erciom acquires M2K Technology Solutions

Melbourne’s M2K Technology Solutions was bought by CRN Fast2019 No.8 Ericom.

M2K, an MSP, specialises in mobility, security and cloud, which Ericom CEO Kyle Page said would boost his own company’s capabilities in those fields.

Page added that by the start of FY 20/21, Ericom will be ready to use M2K’s expertise to create new mobility-centric services that drive revenue growth. While he declined to offer precise numbers, his plans call for Ericom to add multiple eight-figure increments to its top line.

Click here to read the full story.

4 February

Citadel boost Conteng Manager biz with Linked Training acquisition

Citadel bought Linked Training in order to boost its own Micro Focus Content Manager business.

Linked specialises in training end users and administrators in Content Manager, which was previously known as HP TRIM and HP Content Manager until it was rebranded in 2017 when Micro Focus bought HPE’s software business.

Linked’s assets will be incorporated into Citadel’s own Content Manager business Kapish.

Click here to read the full story.

5 February

Global SI Convergint Technologies buys Cerberus

Perth-based systems integrator was acquired by global SI Convergint Technologies for an undisclosed amount.

The acquisition expanded Convergint’s presence into Perth, adding to its existing offices in Sydney and Melbourne.

Cerberus works with customers in Perth’s mining, local government, logistics and transportation markets.

“Our desire to directly meet the needs of our customers across the world has driven our growth in the Australian market, and this acquisition is an important step in servicing our customers with a presence in Western Australia,” said Convergint chief executive Ken Lochiatto.

Click here to read the full story.

6 February

PS&C acquires digital monetiser Respring

ASX-listed services provider PS&C paid $4.5 million to buy Respring, a company that “invests in and advises other digital companies in growing markets that are struggling to reach their full potential.”

As part of the acquisition, PS&C is dipping its toes into property by acquiring 100 percent of regional real-estate portal farmbuy.com, one of the companies in which Respring has invested.

Click here to read the full story.

10 February

ASI buys HCI superstar BEarena

ASI Solutions acquired Sydney-based BEarena for an undisclosed sum.

BEArena earned a reputation for spotting emerging technologies and taking new vendors to the Australian market, most notably Veeam and Nutanix in 2009 and 2012 respectively.

ASI said it will quickly integrate BEarena's Australian business, but its New Zealand operations will continue to operate independently under its own name from its Auckland and Wellington offices.

Click here to read the full story.

11 February

Arq Group offloads enterprise business

Months after announcing it was seeking buyers, Arq Group secured a buyer for its troubled Enterprise business – a consortium that includes Sydney-based investment firm Quadrant Private Equity.

The consortium will pay $35 million all in cash, with the proceeds going towards paying down company debt and focus on managing cost and maximising value for the remaining SMB business.

Arq had been trying to sell either its enterprise and SMB businesses since September 2019 when problems with the former started to surface.

Click here to read the full story.

12 February

Nexon Asia Pacific makes triple acquisition

Nexon Asia Pacific made three acquisitions thanks to the investment from private equity firm EQT last year.

Those three companies were Sydney Microsoft partner Remagine Solutions, Sydney-based XCentral, and the technology services and security solutions divisions of Melbourne-based Kiandra IT.

Nexon expects the acquisitions will boost its cloud and managed IT practice, expand its Melbourne footprint, step up its security practice to the mid-market, and supplement its existing Microsoft Dynamics practice with new intellectual property.

Click here to read the full story.

14 February

Spirit makes $6.9 million double acquisition

Spirit makes its second appearance on the list after buying Trident Business Group, which included Trident Computer Services and Neptune Managed Services.

Both Trident and Neptune will form a new business division called Trident IT Solutions that focuses on custom-designed cloud-based IT and internet solutions for schools, hospitals, aged care providers and medium-sized business.

Click here to read the full story.

17 February

Solution Tech buys 30-year-old IT company Modern Computer Systems

Perth-based MSP Solution Tech bought MCS along with its 1500-strong customer base. MCS focuses on IT support, server solutions, email hosting and other traditional software and hardware.

Solution Tech’s technical director Roy Borekar told CRN that he saw an opportunity to rapidly expand into the SME market by acquiring Modern Computer Systems.

Modern Computer does not offer a cloud play practice beyond Office365 licenses, which presented another opportunity for Solution Tech to offer its own cloud and security services.

Click here to read the full story.

18 February

Citadel buys UK-based Wellbeing Software

Citadel makes a second appearance as well, buying UK-based healthcare software vendor Wellbeing Software Group for $199.5 million).

Wellbeing provides radiology and maternity software solutions that manage patient workflow and data. Wellbeing will fit into Citadel’s health division, adding to its current offerings in pathology and oncology software.

Citadel said the acquisition was part of its strategy to expand into  “high quality software based recurring revenue streams” and to shift the company’s overall earnings profile towards healthcare software.

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18 February

Accenture buys SAP specialist Icon Integration

Accenture has bought another Aussie channel player in SAP consultancy Icon Integration.

Icon Integration specialises in SAP digital supply chain solutions, as well as business intelligence solutions, data optimisation, and delivering bespoke enterprise technology to improve customers’ operational efficiencies. The company hires 70 staff across its offices in Sydney, Melbourne and New Zealand.

Click here to read the full story.