Joining forces for greater efficiencies, growing by gobbling up smaller competitors or complementary firms, cashing out when you can’t cover the bills … there are numerous reasons a company may go the mergers and acquisition route in any economy. But in the current topsy-turvy environment, the stakes are higher and the impetus for market consolidation deals more pressing than ever.
The MSP industry is no stranger to mergers and acquisitions. According to IT Glue’s 2020 Global MSP Benchmark Report, in 2019 more than two-thirds of MSPs were considering being acquired, while nearly 20% were considering making a purchase themselves. But with COVID-19’s wide-ranging impact on MSPs and their customers, it’s no surprise to see many firms considering their options.
Meeting Increased Demand
Consolidation within a maturing market is nothing new. MSP offerings are in high demand, thanks to an increased reliance on IT services in every industry and the unfortunately growing need to protect firms from cyberthreats while meeting stringent compliance standards and regulations. That has fueled rapid growth as more organizations look to outsource some of their essential IT services to MSPs.
Read the complete article at Channel Futures.