Greensboro, North Carolina-based MSP Dynamic Quest has acquired Nexxtep Technology Services, a fellow MSP from Valdosta, Georgia. Financial terms of the deal were not discussed.
This is M&A deal 297 that ChannelE2E has covered so far in 2020. See the complete M&A deal list here.
This is Dynamic Quest’s second acquisition of 2020, having previously purchased Cohn Consulting Corporation in February. In total, Dynamic Quest has completed four acquisitions since forming a partnership with private equity firm Spire Capital in 2018.
The Nexxtep deal will add to Dynamic Quest’s market share in Georgia while providing the ability to cross-sell certain services to Nexxtep’s customers, the buyer said. Dynamic Quest says it will look to leverage its infrastructure – including its data center, centralized remote delivery team, and sales and marketing initiatives – to enhance service solutions for end clients and accelerate growth.
Dynamic Quest Acquires Nexxtep: Company Background
Nexxtep, founded in 2002, offers managed IT, disaster recovery, and hosting services to businesses and enterprises in a number of industries. Approximately 70 percent of the company’s revenue is recurring, according to Dynamic Quest. The Nexxtep team members will join Dynamic Quest and expand to serve Georgia and Florida markets, the companies announced.
Dynamic Quest, founded in 2000, provides IT services to enterprises and mid-sized businesses. The company offers hosted cloud services, disaster recovery, managed IT, and service plans, among other services.
In addition to its Greensboro headquarters, Dynamic Quest has satellite offices in Winston-Salem and Cary, North Carolina; Marietta, Georgia; Clark, Philippines; alongside Nexxtep’s Valdosta, Georgia location.
Dynamic Quest Acquires Nexxtep: An Organic Acquisition
Javier Gomez, CEO of Dynamic Quest said:
"We continue to grow organically and are strategically executing acquisitions to add greater breadth to our services portfolio and geographic reach to better serve our clients and partners. We are excited to welcome the Nexxtep team to Dynamic Quest. The founders at Nexxtep and their team have built a great company, serving critical IT services to their clients. We look forward to continuing the high-quality relationships that Nexxtep has had with their clients while also providing their clients with a broader set of services and solutions to meet their growing needs."
Paul Nichols, President of Nexxtep commented added:
"We are thrilled to partner with Javier and Dynamic Quest. They have a high-integrity culture, exceptional service and partnership to their clients, and we are proud they will continue our history of client-first service with expanded offerings for our customers."
Dynamic Quest’s PE Backing
Spire Capital, the private equity firm that backs Dynamic Quest, is focused primarily on small market companies with a technological bent, including business services, media, communications, and education companies. Spire Capital, founded in 2000, is headquartered in New York.
Frontline Capital Partners acted as buy-side advisor to introduce the Nexxtep opportunity to Spire and Dynamic Quest.
