Channel Brief: Pax8, Umbrellar Technology Group

Grab a cup of your favorite morning beverage and check out the return of our regular market briefing for managed services providers (MSPs), IT service providers (ITSPs), technology service providers (TSPs), cloud service providers (CSPs) cybersecurity consultants, systems integrators, VARs, independent software vendors (ISVs), and distributors.

Scroll down for a quick view of upcoming in-person channel and MSP events at the bottom of this post (while we spiff up our industry calendar behind the scenes. It will return!)

And please send your news tips, information, and industry chatter to editorial director [email protected].

Sip up.

A. Today’s Tech, Channel and MSP News

1. Pax8's New Zealand MSP business changes hands, sort of - New Zealand tech leader Ian Hassell has purchased the assets of Pax8's MSP business in New Zealand and reformed the Umbrellar Technology Group, an MSP serving New Zealand businesses with IT, cloud, productivity and cybersecurity offerings. Hassell formerly worked as the New Zealand country manager for Pax8, and he acquired the MSP business through an asset sale agreement. This acquisition facilitates the continuity of the partnership with Pax8, allowing Umbrellar Technology Group to leverage Pax8's range of cloud products. This is technology M&A deal number 66 that ChannelE2E and affiliate site MSSP Alert have covered so far in 2024. See more than 2,000 technology M&A deals for 2024, 2023, 2022, 2021, and 2020 listed here.

2. UK MSP/MSSP acquisition - FluidOne’s cyber division, Cyber Security Associates (CSA) has acquired UK-based penetration testing and specialist and cyber risk consulting firm SureCloud Cyber Services. More on this story soon. This is technology M&A deal number 67 that ChannelE2E and affiliate site MSSP Alert have covered so far in 2024. 

3. More data on SPAC MSP deal - Noventiq Holdings PLC, a global digital transformation and cybersecurity solutions and services provider, and Corner Growth Acquisition Corp. (Nasdaq: COOL), a special purpose acquisition company (SPAC) filed with the U.S. Securities and Exchange Commission a registration statement in connection with the previously announced deal. Noventiq’s filing included the following financials for the first half of its fiscal year, 2024: revenue of $219.8 million, an increase of 36.4% year-over-year on a reported currency basis and 41.4% in constant currency. Gross profit was $93.8 million, an increase of 25.3% on a reported currency basis, and 32.6% in constant currency. Adjusted EBITDA (excluding share based compensation) was $14.0 million, an increase of 178.4% on a reported currency basis. Adjusted EBITDA (excluding share based compensation) margin on revenue was 6.4%.

4. Oracle steps up AI play - Oracle said it is adding generative artificial intelligence features across its corporate software lineup, intensifying competition with Microsoft and other technology firms to sell the technology to business customers. (Reuters)

5. CMC Networks gains B-BBEE Level 1 status - Johannesburg, South Africa- based CMC Networks, a global Tier 1 service provider that specializes in digital transformation, has attained the Broad-Based Black Economic Empowerment (B-BBEE) Level 1 status in South Africa for the fourth consecutive year. B-BBEE is a policy introduced by the South African government to promote economic transformation and encourage the involvement of Black people in the economy. 

6. Security partnership - TD Synnex, a global distributor and solutions aggregator, has expanded its security offerings across North America, Latin America and the Caribbean through a new partnership with Splunk, a cybersecurity and observability company. (Splunk was acquired by Cisco, but the deal is still not complete.).

7. SaaS data leakage dangers - DoControl, the leading SaaS Security solution, today released the 2024 State of SaaS Data Security Report which found that companies are generating approximately 286,000 new SaaS assets, such as files or recordings, each week. One out of six employees were found to have shared company data with their personal email. 

B. In-Person MSP and Channel Partner Events