IT managed services and security provider Sourcepass announced it has acquired Contemporary Computer Services, Inc. (CCSI). Financial terms of the deal were not disclosed.
This is technology M&A deal number 1,021 that ChannelE2E has covered so far in 2022. See more than 2,000 technology M&A deals involving MSPs, MSSPs & IT service providers listed here.
Sourcepass Acquires CCSI
Sourcepass, founded in 2021, focuses on acquiring managed IT service providers (MSPs) in the SMB sector. The startup, based in New York City, was aligned with Revenue Rocket at the time, a consulting firm that assists MSPs with M&A and growth strategy initiatives. Sourcepass operates out of Northport, Long Island, and now has 325 employees, the company tells ChannelE2E.
CCSI, founded in 1974, is based in Bohemia, New York. The company has 54 employees listed on LinkedIn. CCSI’s areas of expertise include managed network services, professional technical solutions, hardware maintenance contracts, IT solutions, cloud solutions, cybersecurity, disaster recovery, business continuity, next-gen infrastructure, pentesting, risk assessments and security compliance.
With the acquisition, Sourcepass will extend their services into a larger portfolio of mid-sized and enterprise clients. The acquisition will also open up new vertical and geographic markets, including in the public sector, as CCSI holds multiple state and federal contracts, the companies said.
Chuck Canton, CEO and founder of Sourcepass, commented on the news:
“We are committed to finding new ways to be disruptive within the stagnant IT services industry while helping our clients transform their technology as their businesses grow. In CCSI, we found a partner who shares our commitment to innovation and evolution, helping many mid-size and enterprise companies by providing an experience that clients love.”
CCSI executive Tom Ednie added:
“We had conversations with multiple possible integration partners, but what tipped the scale beyond culture and client alignment was the Sourcepass innovative service delivery model leveraging Artificial Intelligence (AI) and Robotic Process Automation (RPA). We are proud to be a part of Sourcepass’ future as they continue their strategic and client-focused portfolio build-out.”
Sourcepass M&A Activity
This is Sourcepass’ sixth acquisition of 2022. Other key deals include:
In March of 2022, the firm also announced a round of funding to be put towards its acquisition strategy. The company raised $70 million through funding involving Metropolitan Partners Group, several angel investors, and Wedge Venture Partners.