Madison, Wisconsin's Core BTS has acquired the Microsoft cloud business unit of SADA Systems for an undisclosed sum. Core BTS is backed by Tailwind Capital, a private equity firm.
SADA of Los Angeles, California, is perhaps best known as a Google Cloud Platform (GCP) and G Suite partner. However, SADA's Microsoft-focused business unit also has extensive traction. The MSP (managed IT service provider) began the Microsoft unit in 2006 as part of a launch partnership for Microsoft Office 365.
SADA since then racked up a number of Microsoft awards, including being named the 2018 Microsoft Partner of the Year for Intelligent Communications, 2017 Microsoft Health Innovation Award winner, 2016 Microsoft Partner of the Year Finalist for Cloud Productivity, and three-time Microsoft US Education Cloud Partner of the Year. SADA also became a premier Microsoft Cloud Solutions Provider, holding multiple Gold competencies, according to SADA President and CEO Tony Safoian.
“This was not an easy decision,” wrote Safoian in a company blog. “But we know that it is the right one – one that will ensure that our entire Microsoft practice team, our Microsoft customer portfolio, and projects are transitioned into the most capable organization.”
All of the Unit’s employees will transition over to Core, according to Safoian.
SADA will use the capital it receives to help scale its well-established Google practice. “It’s an exciting time at SADA and we look forward to building new Google Cloud offerings, new customer relationships and setting new records!” wrote Safoian.
The business unit's sale comes as SADA ramps up for the big Google Cloud Next 2019 conference in May.
Core BTS Growth Plans
Core has positioned itself as a national IT solutions, security, and managed services provider. This deal is part of the company’s ongoing strategy to expand its services portfolio, including its managed services capabilities, across the United States.
In August 2018, Core was itself acquired by Tailwind Capital, a mid-market private equity firm focused on the healthcare, business services, and industrial services sectors.
Referring to the Microsoft-focused business unit acquisition, Core CEO Walter Cook said:
“This acquisition strengthens our strategic partnership with Microsoft and expands our relationships with many tremendous clients. Our talented team will continue to offer our clients the industry-leading services and solutions that help them advance their businesses through technology. I am excited to welcome the employees to the Core family.”
The addition of SADA’s Microsoft business unit will expand Core’s established IT services and cloud solutions, which already include network, data center, collaboration, and security.
Core has 16 offices across the U.S., mostly centered around the Northeast. The company boasts 1,200 active customers in various industries including healthcare, education, financial services, gaming, and manufacturing. The addition of SADA’s Microsoft Unit will significantly expand Core’s ability to serve current and future customers, the company said.
