Platform MSP Magna5 Acquires Apogee’s US Operations

February 06, 2023, 06:25 PM EST

Magna5, a platform MSP devoted to constructing a big presence within the fragmented managed companies enterprise, made the U.S. operations of Apogee IT Companies its fifth MSP acquisition since September of 2021 when it received out of the telecom enterprise to focus particularly on managed companies.

Nationwide managed service supplier Magna5 Monday unveiled the acquisition of the U.S. property of Canadian MSP Apogee IT companies.

With the acquisition, Magna5 will get a crew of 25 individuals within the Pittsburgh and Boston areas with experience in managed IT and cybersecurity companies, stated Bob Farina, CEO of Magna5, which relies in Pittsburgh.

Magna5, which was based as a telecom supplier eight or 9 years in the past earlier than buying its first MSP in Might 2021 after which promoting its telecom enterprise in November 2021, has now bought 5 MSPs, together with the U.S. enterprise of Apogee, Farina informed CRN.

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The corporate’s buyer base contains monetary companies, healthcare, manufacturing, and non-profit companies. It’s totally audited for SOC-2, HIPAA, and PCI.

Magna5, which is backed by NewSpring Holdings since that firm acquired a majority in March 2015, has change into a platform MSP devoted to constructing a bigger managed companies enterprise through natural progress and acquisitions, Farina stated. NewSpring Holdings is a part of Radnor, Pa.-based NewSpring Capital.

“We don’t say we’re rolling up MSPs,” he stated. “We’re constructing a completely built-in platform.”

Toronto, Ontario-based Apogee is continuous to do enterprise in Canada, Farina stated.

“We thought buying the Canadian enterprise could be a distraction,” he stated. “They’ve quite a lot of smaller shoppers. I’ve run multinational companies up to now, however this isn’t the appropriate timing for us.”

Magna5, which supplies managed IT, cyber safety, and cloud-focused companies, didn’t disclose the price of the acquisition.

Magna5 will combine its new Apogee crew in a lot the identical manner it has for all its acquisitions, Farina stated.

“We don’t wish to lose the model consciousness of Apogee,” he stated. “So it’s a gradual course of. We’re very cautious to not disrupt companies. We’ll assist its shoppers with the identical individuals, however add the broader assist of Magna5. And we’ve got a 7-by-24 operation, which is one thing smaller MSPs normally don’t have. We’ve our personal NOC (community operations middle) and SOC (safety operations middle), and a full cybersecurity crew.”

Magna5, which primarily does enterprise within the northeastern U.S., will proceed to accumulate smaller MSPs, Farina stated.

“We’re searching for no less than two extra within the U.S. this yr,” he stated. “We could unfold out just a little extra geographically, however not so far as areas like California but.”