The Bottom Line: NewSpring Holdings Platform Company Magna5 Acquires US Assets of Apogee IT Services
February 16, 2023
NewSpring Holdings, NewSpring’s dedicated buyout strategy, announced that its platform company Magna5, a national provider of managed IT, cybersecurity, and cloud-based services, has acquired the U.S. Assets of Apogee IT Services (“Apogee”), marking its fifth acquisition in the last 18 months.
Apogee is a leading managed IT and cybersecurity services provider
Apogee is a provider of IT security, data backup and disaster recovery, network monitoring, and IT support services to a wide range of businesses across the U.S. and parts of Canada. With over 25 years of experience in managed services, Apogee has broadened its service offerings to meet the evolving IT needs of its clients. By focusing on building close relationships and offering solutions that move the needle for its clients, Apogee carved out a leadership position in the IT support market.
The acquisition bolsters Magna5’s presence in key markets
This deal provides Magna5 additional scale in the Pittsburgh and Boston markets, further strengthening the company’s position as a leader in managed IT services, cybersecurity, data recovery, and cloud services for growing organizations. This transaction aligns with NewSpring Holdings’ buy-and-build approach that involves making strategic acquisitions of complementary businesses that allow the platform company to continue its fast growth.
“The demand for managed IT services continues to grow rapidly and adding Apogee’s skilled team will enhance our combined services delivery experience for customers in two of our core regions. We’re thrilled to welcome Apogee’s U.S. customers and look forward to working with them to provide an even more robust set of offerings as their trusted, outsourced IT services partner.”
This deal comes at a time of fast growth for Magna5
This acquisition is taking place after a record-breaking year for Magna5. Revenue more than doubled in 2022 from the previous year and organic sales grew over 30%. In addition, over the past 18 months, the company successfully integrated operations from its 4 previous acquisitions, TCG Network Services, Stablenet, Interphase Systems and SpinnerTech, as it strives to be the go-to managed IT services partner for mid-market companies.
“At Magna5, we’re seeking to continue growing our geographic footprint and service offerings to provide customers a holistic, client-centric approach to managed IT services. With NewSpring Holdings’ long-term, buy-and-build approach to creating value, Magna5 is in growth mode and outpacing the market. We are confident the Apogee acquisition complements this growing business and enables its continued expansion.”