In the managed service provider (MSP) industry, rapid growth through mergers and acquisitions often comes at the expense of service consistency and internal culture. Many MSP owners are familiar with the story of a private equity-backed company sweeping in, paying top dollar for the company, and gutting it at the expense of the company’s people and culture.
Most of the companies ChannelE2E has profiled in our ongoing series on platform MSPs work to avoid fulfilling this trope. For Cranbury Town, New Jersey-based Integris, reputation is the cornerstone of its business, and maintaining it through each acquisition is non-negotiable.
"Reputation is our wealth," Glenn Mathis, president and COO of Integris, explains to ChannelE2E.
Over the past three and a half years, Integris has completed 10 acquisitions, growing significantly in size and scale. Unlike many MSPs that focus on expanding geographic reach, Integris' growth strategy is built around vertical specialization and seamless integration, according to Mathis.
Vertical Expertise Guides Acquisitions
Integris’ acquisition strategy is centered around developing expertise in specific industries rather than broadening its geographic reach. The company prefers to focus on industries where compliance and industry-specific IT solutions are crucial, according to Mathis.
"The more vertical we can be, the better. It’s what separates us from our competition," he says.
Industries such as financial services, healthcare, legal and nonprofit are key areas of focus for Integris. The company targets MSPs serving these industries, looking to expand its specialization in areas where it can deliver specific, in-depth IT solutions beyond basic infrastructure support. In the legal industry, for example, Integris manages not only IT systems but also line-of-business applications, providing more comprehensive services than a typical MSP might offer, Mathis says.
This vertical focus, he notes, also supports Integris’ ability to increase service pricing post-acquisition. By delivering deeper expertise and more tailored solutions, the company can adjust its pricing structure to reflect the added value it offers, according to Mathis.
Geography Takes a Back Seat
While many MSPs prioritize expanding into new geographic regions, Integris looks at geography last, according to Mathis. The company focuses on finding MSPs that align with its vertical specialization, regardless of their physical location. Once acquired, the company’s 600 employees are leveraged across the country, with resources allocated according to client needs rather than regional proximity.
"We try to put the right resource in front of the right customer situation," Mathis says. This approach allows Integris to optimize its workforce, ensuring that the most qualified personnel are matched with each client’s specific needs. For example, a client in Tyler, Texas, might be supported by a specialist located in another part of the country if that expertise is deemed the best fit. By doing so, Integris avoids the constraints of a strictly regionalized model, which can limit the flexibility needed to deliver specialized services effectively.
"We want to use all 600 of our resources to meet every customer need," Mathis adds. The company’s decentralized workforce allows it to scale efficiently without the need for heavy investments in new regional offices. This model not only increases operational flexibility but also helps maintain consistent service levels across the board.
Although expanding into geographic markets like Phoenix or Chicago could help fill gaps in Integris' national footprint, Mathis says that such moves are secondary to the company’s focus on vertical expertise. "Geography matters, but only after we’ve ensured that the company aligns with our focus on vertical specialization," he explains.
By focusing on industry alignment and leveraging its national workforce, Integris can serve clients across the country without being constrained by geography, offering specialized solutions that meet the unique demands of each vertical.
Employee Trust and Communication in Acquisitions
Trust and communication play a critical role in Integris' acquisition strategy, according to the company’s president. Mathis, who has been a part of as many as 35 acquisitions in his career, equates it to "writing their own country and western song" as they imagine worst-case scenarios during the transition. To counter this, Integris maintains clear, consistent communication with employees, particularly regarding changes to payroll, benefits, and their future within the organization.
"You can’t have an M&A strategy just for the growth perspective," Mathis says. Integris takes an average of six months to fully integrate its acquisitions, though smaller deals can be integrated in as little as 62 days. This process involves aligning systems, tools, and personnel under one unified brand. According to Mathis, all 10 of the company’s acquisitions to date have been fully integrated.
The company also maintains relationships with the original founders of acquired MSPs through a "Founder Advisory Council," which Mathis says helps maintain trust and facilitate smoother transitions during and after the acquisition.
Integris seeks acquisition targets that share similar values, customer profiles, and vertical market focus, which makes integration easier. However, as company CEO Rashaad Bajwa, pointed out to ChannelE2E, the core of a successful acquisition lies in trust. "MSPs are very much in the business of selling trust," he explained.
According to Bajwa, the relationship between a company’s founder and its staff is often a key indicator of how well an integration will go. When the founder can confidently tell their employees, "We’re joining Integris for the right reasons," it builds the trust necessary for a smooth transition. Conversely, when trust and cultural alignment aren’t priorities, there’s a higher risk of employee and client churn, which can undermine the success of the acquisition, Bajwa explained.
The Role of Private Equity in Integris' Growth Strategy
Like many large platform MSPs, Integris’ acquisition strategy is supported by private equity funding, specifically from Frontenac, a private equity firm that has provided the financial backing necessary for Integris’ growth. Private equity funding plays a key role in allowing MSPs to scale rapidly, especially through mergers and acquisitions.
The involvement of private equity in the MSP market is part of a larger trend where investors seek opportunities in businesses with recurring revenue models, such as MSPs, which provide IT services on a subscription basis. According to industry data, private equity firms have shown significant interest in MSPs, largely due to the predictable cash flow and long-term customer relationships that these businesses offer.
For Integris, private equity funding has allowed the company to pursue an aggressive M&A strategy, acquiring MSPs that fit its vertical specialization model. While the financial support from Frontenac accelerates the pace at which Integris can complete acquisitions, Mathis says the company remains selective in its approach. "We are selective about the companies we acquire, ensuring they align with our values and long-term goals," Mathis notes.
Private equity funding also enables MSPs like Integris to offer more competitive acquisition deals. In many cases, acquired companies’ founders are given the opportunity to roll over some of their sale proceeds into equity in the larger platform, aligning their financial interests with the success of the overall business.
Cybersecurity at the Core of Services
In the current MSP landscape, cybersecurity is a critical concern, and Integris has made it a key focus in its service offerings. The company’s cybersecurity solutions are designed to meet the specific needs of industries like financial services and healthcare, where data security and regulatory compliance are top priorities.
"We have a very robust cybersecurity offering for our customers," Mathis explains. This includes a range of services, from proactive threat monitoring to data protection and compliance management. These cybersecurity services are integrated into the company’s broader IT solutions, allowing clients to address multiple aspects of their IT infrastructure with one provider.
In addition to serving external clients, Integris also implements strict internal cybersecurity protocols to ensure the protection of its own systems and data.
Consolidation in the MSP Market
The MSP industry is currently seeing a wave of consolidation as smaller providers find it difficult to scale on their own. Mathis notes that this creates opportunities for platform MSPs like Integris to grow through acquisition.
“It’s really critical that MSPs think long and hard about how they want to get to scale,” he says. “Most of them aren’t going to be able to do that organically themselves. Most of them will want to, and probably will need to investigate some sort of platform as they continue to grow. And there are choices and options and we believe that we're a leading candidate for a lot of those MSPs.”
Integris plans to continue acquiring companies that fit within its vertical specialization strategy. While geography may play a role in future acquisitions, the company’s focus will remain on industries where it can provide deep, specialized expertise. This, combined with a continued emphasis on reputation, trust, and cybersecurity, positions Integris for continued growth in the consolidating MSP landscape.
