CompassMSP has acquired two MSPs in Florida. The deals involve Cubed Group of Miami and WorldwideIT of Jacksonville. Financial terms were not disclosed.
Those are the facts. Now for an unconfirmed thesis. It looks like CompassMSP was started entirely to acquire MSPs and roll them into a larger recurring revenue business. CompassMSP Chairman George Ferris is managing director of Bilgola Capital, which invests in small growth companies. Also, the only two offices listed on CompassMSP's website are the Cubed Group and Worldwide IT locations.
Worldwide IT apparently had at least 10 employees. And Cubed Group apparently had at least nine employees. Leaders from both acquired companies -- Joshua Sizemore and William Sanchez, respectively -- are now regional vice presidents at CompassMSP.
CompassMSP: More Acquisitions Coming?
In a prepared statement, CompassMSP hinted that more M&A deals could be coming. The company said:
"CompassMSP is making significant investments in our local client presence, in the expertise of our technical engineers and in the delivery of our managed services. Further, we plan to pursue a targeted acquisition strategy of complementary businesses that share our vision of distinguishing ourselves with customer service and vertical expertise focused on small and medium-sized businesses."
ChannelE2E has reached out to CompassMSP seeking more details about the company's history, growth strategy, and types of MSPs that are prime targets for buyout. We'll share more details if/when we hear them.
