MSP and MSSP rollups are happening constantly as investors love the recurring revenue business model and the P/E multiples of companies which are larger, generally, go higher.
Iconic IT, LLC just announced the forthcoming merger of 4 IT firms scheduled to take place officially on July 1, 2019. The combined group will be known as Iconic IT LLC. The 4 companies are geographically based in Rochester, Wichita, Dallas, and Denver.
The ideas is to compete with All Covered and mindSHIFT as these large MSPs are at a natural advantage when competing nationally or globally. More importantly, as mergers continue to happen in the business market, the MSP with boots on the ground and SLAs throughout the world could be better positioned to win business.
Iconic IT was formed by four leading IT Managed Services firms that have been part of an industry peer group (Connectwise Evolve) for over four years. Capstone IT, Rochester, New York, Choose Networks, Wichita, Kansas, Live Consulting, Denver, Colorado, and Networking Results, Dallas, TX are each leading IT Managed Services firms in their respective markets. The combined entity will become an industry leading MSP with a national reach that maintains its local feel.
Capstone IT’s co-CEOs Mike Fowler will take on the role of CEO of Iconic IT, and co-CEO Sitima Fowler will be the Executive Vice President and General Manager for the Rochester geography. Choose Networks’ CEO, Chris Hoose will be the VP of Communication for Iconic IT, and COO; Nicklas Herrera will become the General Manager of the Wichita geography. Live Consulting’s owners Tony Miller and Nick Nyberg will become the VP of Technology and VP of Revenue respectively. Networking Results’ CEO Jeff Howard will become the VP of Experience.
Mike Fowler, Co-CEO and founder of Capstone IT and CEO of Iconic IT, said, “These companies are run by some pretty sharp people who have built very successful, fast-growing businesses. We’ve built strong relationships and have enjoyed sharing, coaching and challenging each other for years. Through this merger, we are better able to leverage the resources and talents of these iconic, industry visionaries, along with the teams they lead, to continuously improve our service offering and to accelerate our growth. We have adopted the phrase ‘Better Together’ as our purpose. It certainly applies to the four companies but also applies to our employees, our customers and our community.”
Paul Dippell, CEO of Service Leadership said, “The path chosen by the founding companies now comprising the new Iconic IT shows there is a third and equally valid alternative to growth through acquisition besides private equity and big-buying-small: the merger of equals. The founders’ experience together as members of the same peer group helped them strengthen their future, joint business plan, mission and culture. In our work with the group of owners during their pre-merger phases, we found them to be thoughtful, decisive, crisp in action, fair-minded and accountable – qualities which bode well for any executive team. Iconic IT now arrives on the SMB MSP landscape as one of the bigger players in both size of team and of geographic coverage. They launch with solid momentum towards their ultimate goal of catching the top two players in the space, All Covered and mindSHIFT. The predecessor companies of Iconic IT benchmarked with the Service Leadership Index and we are pleased that they continue to rely on us for unparalleled insight into their performance as compared to the best-in-class in their business model.”
In short – another day, another merger but this is a big deal because it isn’t often when the larger players on the market like All Covered feel heat from below. this merger gives companies with numerous locations another serious option to consider when constructing RFPs.
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