**Editor’s Note: Please click here for a recap of the biggest channel-impacting merger and acquisition news from March.**
The combined entity will be marketed under the NexusTek brand. This is NexusTek’s fourth M&A transaction in less than four years, and the first of several planned for 2018. The company provides IT support and outsourcing, including help desk, cloud services, VoIP, cybersecurity services, server monitoring and Microsoft Dynamics.
Abry is a North America media, communications, business and information services-focused private equity investment firm. In December, it made a majority investment in BTG and completed a recapitalization with NexusTek.
Mike Jenner, NexusTek’s CEO, tells Channel Partners his company has invested in partners, but has “gained significantly from BTG’s experience in this area.”
“BTG also brings strong cloud experience and capabilities to the table, which will provide our channel partners with significant new opportunities to drive revenue,” he said.
Including the BTG merger, NexusTek has a compound annual growth rate (CAGR) of 34 percent during the last three years and currently serves more than 1,200 organizations. Together, the companies will “accelerate growth by delivering better service, a leading service portfolio in the industry, and faster product development, which will empower customers to keep pace with the rapidly evolving cloud and cybersecurity environment,” according to NexusTek.
Jeff Kaplan, who founded BTG and is now NexusTek’s chief revenue and strategy officer, tells Channel Partners the combined company will have a full turnkey offering, including level 1 help desk, field-based engineering and professional services.
“We will create a single partner ecosystem that is national in scope and will allow our partners to provide their customers with a flexible offer set that can be a single outsourced function or a turnkey solution,” he said. “This will allow partners to tailor solutions for their customers and provide a single operational process that is purpose built to meet customers’ business and compliance requirements.”
James Scola, a principal with Abry, said by merging BTG with NexusTek, his firm hopes to “empower organizations with a nationwide partner that allows them to increase their competitive advantage with technology,” and NexusTek will be “unique in its ability to answer this demand and will emerge as a leading national cloud and managed service provider.”
Through M&A, NexusTek has gained services in cloud, business continuity, compliance and VoIP. When targeting organizations for future M&A, it will be looking for “talent, new services (and) access to new markets and verticals,” Jenner said.
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May 17 2019 @ 15:34:37 UTC