Enterprise Computing Services (ECS) and My IT have merged. The combined MSP, branded as My IT, will have roughly 73 employees and focus on the Louisiana and surrounding Gulf South region, the company tells ChannelE2E.
Moreover, the combined MSP will pursue additional acquisitions -- backed by funding from ParkSouth Ventures and Kian Capital Partners.
This is M&A deal Number 77 that ChannelE2E has covered in 2020. See the complete M&A deal list here.
ECS and My IT Merger: MSP Backgrounds
ECS, founded in 1994, is a managed IT service provider (MSP) that offers hosted cloud services, disaster recovery, virtual CIO and security services. The company is headquartered in Shreveport, Louisiana.
My IT, founded in 2000, is an MSP that offers managed IT, hosted cloud services, disaster recovery, virtual CIO, VoIP and security services.
In a prepared statement, Kevin Cook -- CEO of the combined companies -- said:
“ECS and My IT have each forged successful, growing businesses by establishing enduring client relationships, solution-oriented service and support, and professional and responsive teams. Together, the combined company will expand our offerings and service platform to the growing base of small and mid-size businesses in the Gulf South region and beyond.”
Matt Levenson, partner at Kian Capital, added:
“This merger brings together two industry leading managed service providers. We, along with our partners at ParkSouth, are excited to support the collective ECS and My IT teams to further accelerate growth and provide our small and mid-size business clients with exceptional technology services and solutions that meet their complex needs.”
Patrick Leonard, the exiting CEO of My IT, weighed in:
“I couldn’t be more excited for what lies ahead for the combined ECS and My IT, their employees, and clients in this next chapter.”
The Top Down Ventures: On A Related Note...
There's also an interesting angle involving Top Down Ventures, an investment firm backed by MSP veterans that develops SaaS companies. Former IT Glue CEO Chris Day is the driving force behind Top Down Ventures.
So how is Top Down related to this particular deal? Simply put, the ECS-My IT deal will allow My IT CEO Patrick Leonard to exit that business and focus on Backup Radar, a Top Down Ventures portfolio company.
Greg Celmainis, managing director at Top Down Ventures and exiting investor at My IT, offered these thoughts on the deal, and Leonard's full-time focus going forward:
“The successful combination of ECS and My IT will allow our partner and current CEO of My IT, Patrick Leonard, to focus his full attention on Backup Radar, an IT MSP SaaS provider and portfolio company of Top Down Ventures. We are very pleased to see My IT join forces with ECS to form the preeminent provider of IT managed services in the Gulf South.”
Additional Deal Influencers, Advisors
Additional parties involved in the ECS-My IT deal include:
- Moore & Van Allen acted as legal advisor to ParkSouth;
- Robinson, Bradshaw & Hinson acted as legal advisor to Kian Capital;
- FOCUS Investment Banking acted as exclusive financial advisor to ParkSouth and Kian in connection with their investment in My IT.
