Eze Castle Integration, backed by private equity firm H.I.G. Capital, has acquired Alphaserve Technologies, a provider of infrastructure technology and digital IT services, the companies confirmed this morning.
The combined MSP (managed IT services provider) supports more than 800 businesses -- mainly in the financial services and professional services sectors. Financial terms for the deal were not disclosed.
This is M&A deal 295 that ChannelE2E has covered so far in 2020. See the complete M&A deal list here.
Alphaserve's infrastructure services span managed services, unified communications, information security, network, data center and cloud computing capabilities. The company formalized and emphasized a legal services vertical focus in 2017. Key partners at the time included Coronerstone Information Technologies.
Eze Castle Integration, founded in 1995, is a Top 100 Vertical Market MSP, according to ChannelE2E's 2020 research. Private equity firm H.I.G. invested in Eze Castle in 2018.
H.I.G., founded in 1993, has invested in and managed more than 300 companies worldwide. The private equity firm's current portfolio includes more than 100 companies with combined sales in excess of $30 billion, H.I.G. says.
Eze Castle Acquires Alphaserve: Executive Perspectives
In a prepared statement, Eze Castle Integration CEO John Cahaly said:
“Eze Castle’s acquisition of Alphaserve furthers our ability to transform our clients’ businesses, extends our global reach and deepens our talent pool. We have been actively seeking opportunities that not only complement and expand our offering but also align with our corporate culture. We are truly excited to welcome Alphaserve and its team to Eze Castle Integration.”
Alphaserve Technologies CEO Belal Boustanji added:
“This acquisition will greatly benefit the firms we have long served. Together, Eze Castle and Alphaserve will strengthen the solutions, product expertise, and world-class service available to clients around the globe, and deepen our ability to solve their greatest business challenge."
Todd Ofenloch, H.I.G. managing director and Eze Castle board member, concluded:
“When H.I.G. decided to partner with Eze Castle Integration, we were confident we could help the company execute on its strategic growth plans by investing in innovative business processes and pursuing an acquisition strategy. We are incredibly excited to see this strategy come to fruition. Alphaserve brings great people, innovative delivery models, broad product and service capabilities, and high-impact solutions to similar and expansive end markets for Eze Castle.
King & Spalding served as legal counsel on the transaction. Leonis Partners acted as advisor to Alphaserve Technologies.
Private Equity Funds MSP Mergers, Acquisitions
Meanwhile, private equity firms remain active in the MSP and IT consulting M&A market. Recent examples include:
- July 2020: M/C Partners backed the Ascend Technologies-Infogressive merger, uniting an MSP with an MSSP that has Security Operations Center as a Service (SOCaaS) expertise.
- July 2020: Riordan, Lewis & Haden (RLH) invested in MCA Connect, a Microsoft Dynamics 365 cloud consulting partner.
- July 2020: Salt Creek Capital acquired IT Assist, an MSP and TeamLogic IT franchise in Philadelphia, Pennsylvania.
