Magna5, a managed IT, cybersecurity, and cloud services provider, has announced the acquisition of Advanced Network Systems (ANS), expanding its presence in the Mid-Atlantic region. Financial terms of the deal were not disclosed.
This is technology M&A deal number 274 that ChannelE2E and MSSP Alert have covered so far in 2023. See more than 2,000 technology M&A deals for 2023, 2022, 2021, and 2020 listed here.
Magna5, founded in 2014, is based in Pittsburgh, Pennsylvania. The company has 226 employees listed on LinkedIn. Magna5's areas of expertise include managed IT, cybersecurity and cloud services.
ANS, founded in 1996, is based in Charlottesville, Virginia. The company has 31 employees listed on LinkedIn. ANS's areas of expertise include managed IT and cybersecurity services.
This move is expected to reinforce Magna5's position in managed IT services, including cybersecurity, data recovery, and cloud services, according to the company.
Magna5 Acquires ANS: Executives Insight
Bob Farina, CEO of Magna5, commented:
"We're thrilled to welcome the Advanced Network Systems team and customers to the growing Magna5 family. The ANS team's strong technical skills and ability to deliver full-service cybersecurity and managed IT services complement Magna5's integrated service offerings. We will look to build on ANS's existing offerings with our Pentaguard suite of state-of-the-art managed IT services, enabling customers to realize immediate benefits. Also, this partnership allows us to add new locations as we continue expanding into the key Mid-Atlantic markets of Virginia and West Virginia as we grow our footprint across the east coast and mid-west."
Kevin Leibl, CEO and Founder of Advanced Network Systems, said:
"We were immediately impressed with Magna5's customer-centric holistic approach to delivering managed IT services to lower middle-market customers. I'm pleased that our employees will be joining a skilled Magna5 team and that our customers will greatly benefit from the added resources and robust capabilities from Magna5's Pentaguard suite of managed IT services."
Magna5's Continued Growth Trajectory
Magna5 is a platform of NewSpring Holdings, providing advanced IT services including cybersecurity and cloud hosting to diverse industry leaders. With headquarters in Pittsburgh, Pennsylvania, and regional offices spanning from Massachusetts to North Carolina, they serve clients nationwide.
NewSpring Holdings is a specialized holding firm of NewSpring, focusing on platform builds and control buyouts. Founded in 1999, it manages over $3 billion across various strategies, partnering with high-performing companies to help them reach new growth heights.
Magna5's revenue more than doubled in 2022 from the previous year and organic sales grew over 30%. Magna5 was named by MSSP Alert as a top 250 MSSP.
In all, this is the fifth managed services acquisition for Magna5 and the third over the past year. Previous deals included:
- February 2023: The US Assets of Apogee.
- September 2022: Interphase Systems, a Philadelphia-based cybersecurity, data protection, financial services and life sciences managed services provider.
- May 2022: StableNet, a North Carolina-based managed IT service provider.
- March 2022: TCG Network Services (TCG), a Boston, Massachusetts-based managed IT and cybersecurity services provider.
- May 2021: New York-based SpinnerTech.
- November 2017: NetServe365, a Pittsburgh, Pennsylvania-based managed services provider
In November 2021, Magna5 sold its telco business to International Telecom (ITL) to focus on pure-play MSP activities and managed services acquisitions.
