Voice and data management services provider Magna5 has acquired NetServe365, an MSP with a focus on backup, disaster recovery and security services.
With the acquisition, Magna5 gets a significant boost in its geographic reach, services offerings and customer base, said Greg Forrest, CEO of the Dallas-based company.
Magna5 offers network, cloud-based communications and IT services, with a concentration in the Northeast, Northwest and Southwest, Forrest told CRN.
The company's primary offering is the Accession Communicator cloud-based unified communications system from Metaswitch Networks, which competes with similar offerings from Broadsoft, Forrest said.
Pittsburgh-based NetServe365 offers data protection and disaster recovery services based on technology from Commvault; security services based on AlienVault; and co-location services in conjunction with Iron Mountain, he said.
"Magna5 had a very small backup and desktop support business, but it was not a core focus for us," he said. "But we wanted to add those as core offerings. So we looked to acquire them."
NetServe365, on the other hand, had a majority owner who was looking to exit the business to focus on other businesses, and a minority owner, Executive Vice President and Chief Operating Officer Justin Cameron, who was keen on continuing the business, Forrest said.
"Justin will be the business unit owner of our managed services business segment, where he will serve as senior vice president of IT services," he said. "He will have full control of his business segment, including help desk services, backup, disaster recovery, and security."
Magna5 has over 7,500 midmarket enterprise customers nationwide, while NetServe365 brings an additional 200 customers, Forrest said. There is no customer overlap. "These are unique customers to us, which is fantastic to us," he said.
NetServe365 also brings about 50 employees to Magna5, he said.
Forrest declined to discuss financial details of the acquisition as all parties involved are private companies.
Magna5 is a portfolio company of NewSpring Holdings, a Radnor, Pa.-based holding company, and has developed over time in part from a series of acquisitions.
The company was until late 2016 known as X5 Solutions. X5 Solutions in early 2016 acquired NovaTel, a San Antonio-based provider of voice, network and infrastructure technologies, as well as CornerStone Telephone Company, a New York-based advanced communications solutions provider.