NewRocket, backed by private equity firm Gryphon Investors, has acquired Service Stack Technologies. Both companies are ServiceNow Elite partners. Financial terms of the deal were not disclosed. Financial terms of the deal were not disclosed.
This is technology M&A deal number 183 that ChannelE2E has covered so far in 2022.
M&A ServiceNow Partners Combine Businesses
Service Stack, based in Pune, Maharashtra, India, provides consulting and delivery services and solutions across IT Workflows, Customer Workflows, Employee Workflows, and Digital Transformation.
Meanwhile, NewRocket has completed more than 4,000 ServiceNow projects for customers. the buyer plans to leverage Service Stack's team to drive growth across Europe and Asia. Service Stack founding directors Mukul Kant Sharma and Vipin Kumar will join NewRocket in "key leadership roles," though actual executive titles were not announced.
In a prepared statement about the deal, Gabe Stephenson, managing director within the Business Services Group at Gryphon, said:
"Service Stack Technologies is NewRocket's fifth acquisition in eight months as it continues to aggressively scale the business and accelerate impact for clients worldwide. By adding another ServiceNow Elite Partner with global capability and the proven ability to sell to and retain blue-chip clients, NewRocket is in a truly differentiated position to service more customers in more sectors as the world's leading ServiceNow firm."
Added NewRocket CEO Matt Stoyka:
"We are delighted to welcome Mukul, Vipin, and the entire Service Stack team to our NewRocket crew. Our teams have a long history of working together. The Service Stack consultants are recognized for their expertise in solving complex technical challenges and for their deep platform knowledge that together creates outstanding solutions for clients, as demonstrated by leading satisfaction scores. Together, we are on a mission to go beyond to deliver meaningful experiences and extraordinary results with ServiceNow."
Concluded Sharma:
"This is the perfect time to partner with NewRocket and to embark on this journey together. We have a rich base of customers that we service across the landscape of offerings on the ServiceNow platform, and our CSAT score is an impressive 5 out of 5. This partnership brings together our teams with their strong technical and functional expertise to provide a wider range of solutions and services to the market.
With our long-standing working relationship with NewRocket, we are excited to bring the teams together to work as one crew. Service Stack's deep knowledge and expertise in AIOps, BFSI, Digital Transformation, and Platform with NewRocket's pedigree and portfolio is an elite power combination. We look forward to growing the business, providing new opportunities for our teams, and amplifying our presence in India and globally."
NewRocket's Experience Acquiring ServiceNow Partners
NewRocket has M&A experience. The company merged with fellow ServiceNow partner HighMetric in September 2021, and the combined businesses marched forward under the NewRocket name.
Private equity firm Gryphon Investors has owned Highmetric since May 2018. Around the same time, Highmetric also acquired ServiceNow partners Fishbone Analytics and Iceberg Networks.
By July 2020, Highmetric acquired Vorto, a ServiceNow partner in the United Kingdom focused on financial services customers. Vorto’s intellectual property includes home-grown code quality and patch management software designed for ServiceNow customers.
Gryphon Investors: Private Equity and IT Services Provider (ITSP) Focus
Gryphon typically invests $50 million to $300 million in portfolio companies with enterprise values ranging from approximately $100 million to $600 million.
Highmetric owner Gryphon Investors has extensive experience in and around the IT services provider (ITSP) market. For instance, the private equity firm owns Microsoft Azure cloud consultancy 3Cloud. And 3Cloud, in turn, acquired the consulting arm of Pragmatic Works in September 2020.
