RDX has acquired managed cloud services provider Navisite, a midmarket MSP that has extensive VMware, Microsoft Azure and Office 365 cloud services experience. Financial terms were not disclosed.
RDX, backed by private equity firm Madison Dearborn Partners, has been acquiring MSPs worldwide -- particularly those with managed database services expertise.
Meanwhile, this is Navisite's third owner in less than a decade. Time Warner Cable acquired Navisite in 2011 for $230 million. At the time, Navisite had roughly 570 employees and 1,200 customers. By 2015, Charter Communications acquired Time Warner Cable (and, by extension -- Navisite) in a $78.7 billion deal.
Fast forward to present day, and Charter Communications essentially punted on the MSP market and Navisite to focus on fiber-based technology solutions.
In a prepared statement about the deal, Phil Meeks, EVP and president, Spectrum Enterprise, part of Charter Communications, said:
"With its shared mission, RDX will benefit from Navisite's contributions as a trusted cloud service provider to its clients. As part of our ongoing prioritization and refinement of our portfolio, this divestiture will accelerate the execution of our strategy to serve America's largest businesses and communications service providers as a national service provider of scalable fiber-based technology solutions."
Strangely, neither RDX nor Navisite commented about the deal. The silence included Navisite's Group VP and GM, Sumeet Sabharwal, who oversees the business. ChannelE2E suspects both RDX and Navisite will be more vocal once the deal closes within a few weeks.
RDX: The Buyer's Background
RDX, founded in 1994, could be a good landing place for Navisite.
Indeed, RDX provides database infrastructure, data management and cloud management services in North America. The company's expertise spans Microsoft Azure, Amazon Web Services (AWS) and Oracle DB Cloud; and a range of managed database services.
Madison Dearborn Partners acquired RDX (short for Remote DBA Experts) in April 2018, and has made multiple tuck-in acquisitions since that time. Recent RDX acquisitions include:
Madison Dearborn Partners has extensive experience acquiring and building MSPs and MSP-friendly companies. Key investments include Intermedia, a SaaS provider to MSPs.
Navisite: The MSP's Background
Navisite was an early leader in the midmarket MSP sector. The company evolved to become a key Microsoft Azure Expert MSP as well as a VMware Horizon and AirCloud partner. Additional partners include Proofpoint and Zerto for email security and business continuity, respectively.
Navisite has data centers in:
- Andover, MA
- Santa Clara, CA
- Syracuse, NY
- Redhill, UK
- Woking, UK
- Watford, UK
Key dates in Navisite's history include:
- 2011: Time Warner Cable acquired Navisite in 2011 for $230 million.
- September 2013: Navisite launched a formalized partner program for enterprise-class hosting, managed applications, managed messaging and managed cloud services.
- July 2014: Launches enterprise mobility management (EMM) service powered by VMware's AirWatch.
- November 2014: Adds 11 new Master Agents to its partner program.
- February 2015: VMware names Navisite earns the Global and Americas VMware Partner Network Award in the Service Provider Partner of the Year category.
- February 2015: Opens new data center in Santa Clara, California.
- May 2015: Becomes Microsoft Office 365 partner.
- May 2015: Charter Communications acquires Time Warner Cable (and, by extension, Navisite)
- October 2015: Navisite introduces Desktop as a Service, powered by VMware Horizon.
- March 2016: Launches enhanced client portal, called Proximity,
- July 2016: Introduces managed cloud services for Microsoft Azure.
- October 2017: Bundles Proofpoint for Office 365 email security.
- May 2018: Promotes business continuity partnership with Zerto.
- January 2019: Recognized as a Microsoft Azure Expert MSP.
- July 2019: Partners with Alert Logic to promote managed threat detection and remediation.
ChannelE2E will provide an update on the RDX-Navisite deal once the buyout is completed.
