Coretelligent, backed by private equity firm VSS Capital Partners, has acquired Soundshore Technology Group. a managed IT services provider (MSP) focused on financial services firms. Financial terms of the deal were not disclosed.
This is M&A deal number 448 that ChannelE2E has covered so far this year. See the complete M&A deal list here.
The combined company, united under the Coretelligent name, has more than 200 full-time employees, and over 500 clients nationwide.
Soundshore Technology Group (STG) provides IT consulting and MSP services to more than 70 hedge funds, private equity firms, venture capitalists, registered investment advisory (RIA) firms and Family Offices nationwide. Customers are typically located in Connecticut, New York City and Los Angeles.
Coretelligent Acquires Soundshore Technology: Executive MSP Perspectives
In a prepared statement about the deal, Coretelligent Founder, President and CEO Kevin J. Routhier said:
“We’re delighted to welcome the Soundshore team and their world-class clientele to the Coretelligent family. The shared commitment to delivering a superlative IT experience to our collective clients made bringing the two firms together a natural decision. The acquisition of STG greatly compliments and further strengthens Coretelligent’s iron-clad platform and unparalleled expertise in the Financial Services Sector.”
Added Eric Benda, managing partner at Soundshore:
“With our acquisition through Coretelligent, we’ll be able to provide our client base enhanced solutions and offerings, strengthening the combined companies’ positioning for future success,” stated Eric Benda, Managing Partner, Soundshore. “We’re confident Coretelligent’s White Glove approach will bolster our successes within the financial services vertical and beyond.”
Concluded Trent Hickman, managing director at VSS:
“Soundshore’s focus of serving the financial services vertical industry aligns naturally with Coretelligent’s client portfolio. This acquisition further exemplifies VSS’s focus of investing and building value by leveraging suitable growth opportunities that are additive to the platform company. We are thrilled to see Coretelligent’s significant growth through expansion over the past 18 months, and are looking forward to building on to to-date successes.”
Additional MSP Mergers, Acquisitions to Note
Coretelligent, backed by VSS since October 2016, has extensive M&A experience. Earlier acquisitions included:
- United Technology Group LLC of Atlanta, Georgia; and
- SoundView IT Solutions LLC of Stamford, Connecticut.
Also, M&A activity in the financial services vertical has been steady for MSPs. Noteworthy deals include:
- March 2020: Prytek Holdings invested $50 million in Delta Capita Group, a financial services consulting firm and MSP. Tuck-in acquisitions are expected.
- July 2019: Thrive acquired Tier1Net. Thrive is backed by M/C Partners.
- February 2019: Abacus Group acquired Proactive Technologies. Abacus is backed by WestView Capital Partners, a Boston-based private equity firm.
- September 2018: Data Systems Technology Solutions acquired Unicom Technologies Inc., a regional IT-provider for banks and credit unions.
- July 2018: Thrive acquired InfoHedge Technologies, an MSP and private cloud provider focused on financial services and hedge fund organizations.
- June 2018: H.I.G. Capital invested in Eze Castle in June 2018. At the time, Eze Castle claimed to have more than 650 alternative investment and financial sector customers around the world.
- October 2017: Thrive acquired Precision IT, a New York-based MSP with financial services expertise.
