How Magna5 is Outperforming the Market in Managed IT Services

PE Perspectives/White Papers
Case Studies

How Magna5 is Outperforming the Market in Managed IT Services

Deploying our long-term, buy-and-build approach to make Magna5 a managed IT services market leader

NewSpring Holdings leveraged its operational expertise to execute a strategic growth plan that turned Magna5 into a managed IT services market leader with a long runway for continued expansion.

What we saw at investment

Magna5 operates in the fragmented managed IT services industry. Comprised of many small- and mid-sized players, the industry is ripe for consolidation.

The managed IT services industry continues to expand as more businesses lean on service providers to create operational and cost efficiencies. Revenue is expected to show an annual growth rate (CAGR 2023-2028) of 9.65%, resulting in a market volume of US$113.80bn by 2028.

Source: Cybersecurity - United States: Statista Market Forecast

The company lacked the team and infrastructure to acquire, and integrate into a robust platform build of smaller sub-scale managed IT services companies.

The company provided much-needed services but was lacking a more formalized plan to take them to market and cross sell.

Magna5 needed a professionalized management team with experience integrating, cross-selling, and positioning businesses for scalable growth.

How we're capitalizing

1. ESTABLISHING A GROWTH-ORIENTED LEADERSHIP TEAM
NewSpring leveraged its expansive network and tapped Industry Leader, Robert Farina to serve as CEO, a technology and tech-enabled services veteran with deep experience growing PE-backed businesses. Mr. Farina has subsequently built an organization with the skills needed to support our long-term strategy.

2. UPGRADING TECHNOLOGY
Magna5 has built a team of skilled technical experts that are able to leverage the potential of the industry’s best-of-breed technology solutions and build a set of holistic tech-enabled managed IT services that meet the ever-increasing needs of the market.

3. EXECUTING DISCIPLINED M&A APPROACH WITH A FOCUS ON INTEGRATION
Over the past two years, the company successfully acquired 6 companies and integrated operations and customers to unify the business onto a common operating platform, eliminate redundant processes and systems inefficiencies, and expand solutions offerings for customers.

4. MAXIMIZING CROSS-SELLING OPPORTUNITIES
Magna5 is focused on acquiring businesses with complementary service offerings that create compelling cross-selling opportunities and expand wallet share with the existing customers of acquired companies.

Growth by the Numbers

Refined strategic focus and continual operational improvements create integrated platforms that enable accelerated growth

Our Repeatable Process

The Magna5 story is an apt reflection of NewSpring Holdings’ methodology of partnering with a proven leader of an innovative company in an expanding, fragmented market and building a team that can execute a strategy to drive ongoing operational enhancements that drive accelerated growth.

NewSpring’s brand of partnership starts with the proper alignment of interests with founders and executives looking to take their business to the next level while maintaining company culture. We collaborate with executive teams to forge smart paths to sustainable growth. From acquisitions to new product offerings, we’re working alongside our entrepreneurs to create fully-integrated platform companies that can support rapid, continued growth.


FOR MORE INFORMATION, CONTACT US TODAY:

ADAM VEVERKA
Partner, Business Development
aveverka@newspringcapital.com
(610) 567-2392

ADAM VEVERKA

Partner, Business Development

aveverka@newspringcapital.com

(610) 567-2392


MIKE O'NEILL
Managing Director, Fundraising
moneill@newspringcapital.com
(610) 947-6227

MIKE O'NEILL

Managing Director, Fundraising

moneill@newspringcapital.com

(610) 947-6227


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