SourcePass acquires Suite3 to complete its $500 million MSP goal within 2026
Another $70 million is spent buying network solutions and technology Inc., Suite3, to expand its business in Massachusetts, Vermont, Rhode Island, New Hampshire and Maine. SourcePass wanted to get more customers in those areas. With the Suite3 acquisition, the company now has local feet on the ground.
The SMB market demands accelerated growth to fuel its mission of revolutionising the service industry. A recent announcement from a New York-based IT solutions provider that it completed a funding round worth $70 million where Suite3 was purchased.
Network Solutions and Technology, Inc. (NST) was part of another goal the company managed to achieve at the start of March 2022. The competition for its latest round of funding was also announced.
At the moment, SourcePass managed to convey the message to the MSP world that they want to be the best in business and the acquisitions are just part of the deal. With the newly established relationship with Metropolitan Partners Group and several angel investors, Wedge Venture Partners supported the funding. SourcePass aims to be the best SMB technology provider across North America, and their Suite3 acquisition reflects the seriousness.
SourcePass planned seven acquisitions in 2022; NST and Sutie3 are two. Suite3 is headquartered in Easthampton, Mass. It specialises in a managed network, management, cloud migration, IT, cybersecurity and related services.
The company has over 6,000 customers for managed endpoints and 100,000 managed customer inputs. They span eight industries, and now they belong to SourcePass. Founded in 1987, Sutie3 went through sustainable growth and is genuinely compatible with SourcePass culture. Financial, IT, cloud and mitigation services will get a boost with the support of the fantastic service team.
SourcePass wants to become the best in business and the household name for managed services. Buying Suite3 helped them bring the dream a step closer. The company intends to build an ambitious $500 million MSP business over the next five years. Founder and chairman Chuck Canton said they “want to be a top 10 managed service provider by the end of this year.”
SourcePass delivers an omnichannel, end-to-end approach with a proper focus on digitalising the provided services. SMBs need to connect with the right technology to fill their needs and bring out the most value. Opportunities and outcomes are not easy to come by. Hence these companies make drastic decisions to pour millions of euros into buy-ins. SMBs account for over 30 million business segments in the US that need proper IT solutions. It created demand, and the market should be over $100 billion by 2025, according to the SourcePass NST buying press release.
The company welcomed Sutie3 into their portfolio on the social channels, which is the second acquisition in 30 days. We see companies buying in one another, but acquiring two companies is something we do not see pretty often within a month. Sutie3IT will primarily help small to mid-sized businesses (SMBs). Suite3 will bring 232 clients to SourcePass and 30 employees. In total, the employee count of SourcePass becomes 190. They together will serve SMBs with managed services through IT, cloud, cyber security and similar facilities.
As the acquisition is complete, SourcePass can add 24x7 customer care to Suite3 clients, elevating capabilities. Later around the year, they planned to launch a mobile app with integration from all the services to provide a seamless experiment across the board. Canton said, “Suite3 is super helpful because they have a good framework to do that successfully.”
Even though financial terms are still in the dark, the company wants to archive the $500 million mark by 2025. It should bring the company into the top 10 boundaries. Still, we are unsure if the market will be at the same scale in three years as the IT industry is constantly evolving. With NST helping SourcePass get organic growth, Suite3 as an additional helper for managed services, SourcePass seemed to be on the right track to becoming one of the best MSPs in the Northern United States.