Medicus IT (MIT) of Atlanta, Georgia, has acquired Information Strategy Design (ISD) of Phoenix, Arizona. The deal unites two managed IT services providers (MSPs) in the healthcare vertical. The combined company will double down on automation while pushing deeper into security services. Financial terms were not disclosed.
Ahead of the deal, Medicus IT was already a Top 100 Vertical Market MSP for 2018, according to ChannelE2E's research. The company manages 400+ customer locations and 6,000+ endpoints in healthcare practices across the Southeast United States, Medicus IT indicates on its website. So how big will Medicus IT become with ISD on board? We're checking on headcount figures.
In addition to gaining scale in the healthcare IT service market, Medicus IT will gain improved purchasing power with vendors and suppliers, according to the company’s CEO, Chris Jann.
Executive Perspectives
In a prepared statement about the deal, Jann said:
"We are confident that our new affiliation will better equip us to serve all our clients today and for many years to come. In the upcoming months, we will take the best ideas from both companies and begin to merge them into the new Medicus IT. Two immediate focuses include improved automation and an increased focus on security – all to provide an improved and more protected experience to our clients. We want to offer our clients a feeling of confidence when it comes to their compliance."
The two teams will continue to operate independently of one another in order to maintain the same quality of support for their clients, they said in a prepared statement. Steve Losefsky, founder and CEO of ISD, shifts to president of ISD and CTO of Medicus IT. The company says it plans to bring more talent into the team to help drive technical innovation, project management, and overall client experience.
Mergers & Acquisitions: Healthcare MSP Consolidation
Some MSPs are increasingly targeting the healthcare vertical, but the journey isn't easy. Facilities like doctors offices, imaging centers, dental practices, clinics, and more certainly want outsourced IT help. But the MSPs need to be fluent in the healthcare sector -- mastering compliance issues like HIPAA, while also diving into such areas as electronic health records (EHR). Key influencers in the market include Compliancy Group, while helps MSPs to wrap their arms around HIPAA and more.
Amid all those variables, some MSPs are acquiring their way into the healthcare vertical. Among the deals we've tracked:
- January 2019: CompassMSP bought TS Tech Enterprises, a Pennsylvania-area MSP that supports dental practices.
- June, 2018: Netgain Technology acquired iManaged Solutions, a healthcare MSP.
- June 2018: FutureTech Holding (FTH) acquired A2U, a healthcare-focused IT solutions provider, MSP and consultancy in Pittsburgh, Pennsylvania.
- May 2018: Healthcare consulting and services firm Cumberland Consulting Group acquired LinkEHR, an Electronic Health Records (EHR) managed services firm.
- March 2018: CareWorx, an MSP focused on senior healthcare facilities, closed a $17 million round of funding from Kayne Partners. CareWorx has since merged with Fully Managed.
Additional insights from Joe Panettieri.
