Electric, a New York-based MSP that blends organic software development with third-party automation software, has acquired Techvera -- an MSP (managed IT services provider) in Texas. Financial terms of the deal were not disclosed.
This is technology M&A deal number 553 that ChannelE2E has covered so far in 2021. See all technology M&A deals for 2021 and 2020 listed here.
Electric CEO Ryan Denehy (pictured at top) and Techvera CEO Reese Ormand (insert) explained the M&A deal in this ChannelE2E video interview:
Techvera and Electric: MSP Business Backgrounds
Techvera, originally known as Geek on Wheels, was founded in 2001 and pivoted to managed services in 2015. The MSP supports over 90 clients in the Dallas-Fort Worth, Texas market and also has additional customer reach across the United States.
Electric, meanwhile, is a New York-based IT service provider that has been developing its own automation software. The MSP has raised more than $100 million in venture capital funding since the business launched in 2016. Key investors include Greenspring Associates, Bessemer Venture Partners, GGV Capital, 01 Advisors and Primary Venture Partners, Atreides Management and Vintage Investment Partners.
Electric now has more than 400 customers and 30,000 end users under management.
Electric and Techvera both have M&A (merger and acquisition) experience. Indeed:
- Electric acquired New York neighbor Sinu in November 2020.
- Techvera acquired the managed IT service division of Cima Solutions Group in July 2020.
Electric Acquires Techvera: CEOs On the Record
The video interview further above, featuring Electric's Denehy and Techvera's Ormand, covers the following points:
- 0:00 - Introductions
- 0:18 - How Electric.ai found Techvera
- 1:41 - Techvera's M&A experience and business building ahead of the Electric.ai deal
- 3:10 - How Techvera structured a previous MSP acquisition
- 4:47 - Why Electric.ai, armed with venture capital, decided Techvera was the right acquisition.
- 5:23 - Blending organic growth with M&A: Finding companies with a shared mindset and skill set.
- 6:18 - Layering best-in-class managed IT services atop software.
- 7:42 - Electric.ai's business stats: Headcount, endpoints under management, and annual recurring revenue (ARR)
- 8:32 - Techvera's business focus and customer reach in Texas.
- 10:15 - Electric.ai's perspectives on growth vs. quality of business. Understanding where to say no and how to avoid certain business temptations.
- 12:02 - MSPs, managed IT support and internal software development: The intellectual property (IP) strategy.
- 14:06 - Conclusion
