Startup investment firm Sourcepass has acquired Network Solutions and Technology Inc (NST) for a mix of cash and equity. The deal's overall price tag and valuation were not disclosed.
This is technology M&A deal number 230 that ChannelE2E has covered so far in 2022. See more than 1,000 technology M&A deals involving MSPs, MSSPs & IT service providers listed here.
At the same time, the firm announced a $70 million round of funding. The funding involved Metropolitan Partners Group; several angel investors; and Wedge Venture Partners.
Sourcepass Builds Digital Ecosystem With Acquisition of NST
Sourcepass launched in February 2021 with the stated goal of acquiring multiple managed IT service providers (MSPs). Sourcepass will use the NST acquisition and latest funding to continue building out its digital ecosystem, make more acquisitions, and invest in a go-to-market strategy that makes it easier for SMBs to procure IT services overall. The company says it aims to complete seven acquisitions by the end of 2022.
Moving forward, NST will serve as the platform company for Sourcepass’ organic and inorganic growth, with plans for all future acquisitions to be integrated into the NST operating model, the company said. NST’s 155 employees and its locations New York City, New York; Long Island, New York; New Jersey; Connecticut and Tennessee, will all remain intact.
Sourcepass Acquires NST: Leadership Commentary
Chuck Canton, chairman, Sourcepass, said:
“We could not be more pleased to share that we have closed on the acquisition of NST and to have fully retained NST’s leadership team as they will play a pivotal role in our plans to advance the industry. This achievement and latest round of funding affirms the market opportunity to enhance and modernize current IT service offerings and how they are delivered to SMBs, as well as, the belief in the value and necessity of the Sourcepass mission.”
Matthew Brown, NST CFO and co-founder, added:
“Our team at NST looks forward to the future and what we will do together with Sourcepass as now a combined enterprise. Together, utilizing Sourcepass’ model and technology coupled with our industry experts we can truly drive the transformation of IT services to bring innovation to the SMB market and support our clients in enhancing their competitive position.”
Richard Lin, managing director, Metropolitan Partners Group, commented:
“We congratulate Sourcepass and NST for completing this strategic acquisition. Sourcepass’ mission presents a fantastic market opportunity, and we are proud to join them on their journey. The customer-obsessed mentality Sourcepass embodies, coupled with its fresh, dynamic take on addressing existing gaps in IT solutions that affect SMBs worldwide, position it for robust success. They bring an innovative vision and a commitment to becoming agile operators and entrepreneurs that is very exciting to be a part of.”
