CompassMSP has made its first acquisition of 2020, buying Western Digitech, a Florida-region provider of legal IT services.
This is M&A Deal Number 55 that ChannelE2E has covered in 2020. See the complete M&A deal list here.
Western Digitech, founded in 1994, provides IT support, practices, and solutions to law firms and other small and medium-sized businesses throughout the region.
The acquisition extends CompassMSP’s legal offerings while strengthening its presence in Florida, the buyer said. In addition to expanding the number of engineers the company has in Miami, the deal will also see it add a new Tampa office.
CompassMSP Acquires Western Digitech: Executive Perspectives
Tom Praschak, CEO of CompassMSP said:
“We are excited to welcome Western Digitech to the CompassMSP family. The Western Digitech team will further enhance our ability to serve as our clients’ local IT business partner throughout Florida, especially within the legal sector. Their strong legal capabilities and presence will buttress our strategy to be a class-leading, vertically-focused provider of managed IT services, offering support, consulting and security.”
Josh Kotler, CEO of Western Digitech, commented:
“Joining CompassMSP allows our team to better serve our clients. It’s a great opportunity for us to be part of a much larger, progressive MSP that shares our vision of growth through operational excellence within vertical markets. We have long been focused on delivering the best possible IT services for law firms. We now have access to the substantial resources of CompassMSP, including additional capabilities such as Managed VOIP, fiber, advanced security, and compliance services. Coming together with CompassMSP will help us serve our clients even better and reach our goals faster than we would have been able to do on our own.”
CompassMSP’s Expansion
CompassMSP has extensive M&A experience. Earlier deals include:
- June 2019: GreenPoint of Princeton, New Jersey.
- March 2019: Miami-based Dynamic Media Technologies.
- January 2019: TS Tech Enterprises, an MSP that supports dental practices in the Wyomissing, Pennsylvania, area.
CompassMSP has long touted its “targeted acquisition strategy” focused on strong vertical market MSPs in the SMB sector.
To fund acquisitions, CompassMSP uses a combination of cash generated from the business, debt, and equity. "Our funding model is part of a strong value proposition for the seller," Praschak tells ChannelE2E.
