F12.net Inc. has acquired Level4 Technologies, a managed IT services provider (MSP) in Vancouver, Canada, the companies have confirmed. Financial terms were not disclosed.
Level4 had roughly 50 employees ahead of the deal. The acquired company's MSP business supports small business customers across British Columbia and much of Canada. All of Level4’s ownership, leadership, and employees will join F12. That includes Level4’s Ryan Sigouin and Tim Painter -- who shift to COO and CFO, respectively, at F12, the company said.
F12's headcount now climbs to more than 200 employees working at 10 service locations in B.C., Alberta, and Ontario.
F12.net Acquires Level4: More MSP Buyout Details
Explaining the Level4 acquisition, F12.net CEO Alex Webb says:
“Level4 offers F12 an exciting opportunity to bolster our customer service and expand our reach. Escalating security threats and the disruptive nature of cloud computing and machine learning present challenges too large for small IT teams, leaving SMBs vulnerable. With Level4, F12 continues on our strategy to build a national company helping small to mid-sized businesses with reliable and secure computing environments.”
Level4 was founded in 1979 as Basic Business Systems. The company was purchased by senior management in 2012 and rebranded as Level4 at that time. Around the same time, the company shifted its focus to fully managed IT services, while building a strong presence in the B.C. region.
F12.net: Multiple MSP Acquisitions
F12.net has been on a buying spree across Canada. Key acquisitions involved:
- Apps on Tap and Paradigm Networks in mid-2018.
- Sitkum IT Managed Services and OnDeck Solutions in January 2018.
An earlier deal involved XCEL Professional Services, which Passportal CEO Colin Knox previously owned.
MSP Mergers and Acquisitions: Canadian Deals
Canadian MSPs and IT service providers have generated a steady drumbeat of mergers and acquisitions. Among the deals ChannelE2E has tracked:
- CareWorx and Fully Managed recently merged, backed by private equity funding;
- CDW acquired Scalar Decisions, a ServiceNow partner with cybersecurity expertise;
- Alithya acquired the managed web services business from Canadian telco company TELUS;
- NTT Data Services purchased Sierra Systems Group, a Vancouver-based IT services and consulting firm;
- SHEA Solutions acquired TGO Consulting, a Microsoft Dynamics consulting partner in Markham, Ontario, Canada;
- KPMG acquired Adoxio Business Solutions, a Microsoft Dynamics 365 integrator and gold-level partner;
- Global cloud networking provider GTT Communications acquired Accelerated Connections (ACI).
