PE-Backed NetGain Acquires TruTechnology In Southeastern US Bet

NetGain Technologies Monday unveiled the acquisition of TruTechnology, the latest in a line of acquisitions NetGain has made since it was acquired by Evergreen Services Group.

With the acquisition, Lexington, Ky.-based NetGain Technologies gets its first foothold in Florida and Georgia, said Megan Reed, NetGain’s vice president of marketing.

Financial terms of the deal were not disclosed.

NetGain, a member of the Elite 150 on the CRN MSP 500 list, already has branch offices in Kentucky, Tennessee, Ohio, North Carolina, Missouri, and Arkansas, nearly all of which came from acquisitions, Reed told CRN.

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Jacksonville, Fla.-based TruTechnology now gives NetGain access to the northern Florida and Southern Georgia markets, she said.

NetGain Technologies was acquired in December of 2018 by Evergreen Services Group, a San Francisco-based private equity-backed holding company focused on managed services and government services. The company has made eight acquisitions in the IT services space, including NetGain, as well as purchased a number of other MSPs via those eight.

NetGain Technologies made a number of acquisitions before being acquired itself, Reed said. Since it was acquired, the company, with Evergreen support, including Raleigh, N.C.-based Progressive Computer Systems in late 2019 and Ohio-based Arnet Technologies and LK Tech.

“The acquisition of TruTechnology was mainly for geographical expansion,” she said. “Our whole goal with acquisitions is to acquire great companies that are running really well already. We just want to offer them the ability to grow. Their employees stay in place and take care of existing customers like they always have.”

When making an acquisition, NetGain and the acquired companies see synergies mainly in the marketing, finance, human resources, and sales rep sides, Reed said.

“We keep the existing sales reps, but add sales support, inside sales support, and marketing support,” she said. “Many smaller MSPs don’t have these inside. With our support, there’s no need for smaller MSPs to start these from scratch.”

NetGain Technologies plans to continue its acquisition spree, Reed said.

“We’re actively looking for MSPs that are looking for a great home for their clients and employees,” she said. “It’s a good move for their clients. We don’t want to rock the boat.”

NetGain Technologies worked with Evergreen Services Group as its advisor on the acquisition of TruTechnology, Reed said.

The MSP mergers and acquisition space has been very active, Reed said.

“There was a lull during the pandemic,” she said. “But it’s ramped up again. There are a lot of MSPs. But a lot of companies are looking at potential retirement plans. There are lots of opportunities for them.”RELATED TOPICS:

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