BlueAlly Technology Solutions, backed by private equity firm Source Capital, has acquired IT solutions provider n2grate Government Technology Solutions. Financial terms of the deal were not disclosed.
This is technology M&A deal number 31 that ChannelE2E has covered so far in 2023. See more than 2,000 technology M&A deals involving MSPs, MSSPs & IT service providers listed here.
BlueAlly Acquires n2grate
BlueAlly, founded in 1999, is based in Cary, North Carolina. The company has 197 employees listed on LinkedIn. BlueAlly’s areas of expertise include data protection, data security, technology, VAR, infosec, IT professional services, and IT managed services.
N2grate Government Technology Solutions, founded in 2010, is based in Greenbelt, Maryland. The company has 32 employees listed on LinkedIn. N2grate’s areas of expertise include data center integration, cloud readiness and implementation services, storage, network and virtualization solutions, and cloud services resale.
The combination of BlueAlly and n2grate expands access to federal customers and the combined companies’ suite of managed and professional services offerings.
According to George Barkley, CEO of BlueAlly:
“The acquisition of n2grate provides strategic diversification to BlueAlly’s core business while accelerating our maturation as a preferred national solution provider. Several of our core vendor alliances are immediately strengthened, ultimately helping us serve our clients more comprehensively. We are excited to welcome a team of focused professionals with deep understanding of the federal space, and I have great confidence in the success of our combined efforts.”
Steve Halligan, CEO of n2grate, added:
“Our two cultures are a great fit, and there is immediate opportunity to align BlueAlly resources to our primary U.S. Federal Government customer base. The breadth and depth of BlueAlly’s technical capabilities will build on our ability to support our clients’ complex operations and, together, we will now be able to offer cloud, infrastructure, security, professional and managed services solutions to our market segment.”
Government IT Services M&A
Merger and acquisition (M&A) activity involving government-focused IT service providers (ITSPs), MSPs, MSSPs, cybersecurity and technology consultancies has been steady to strong.
Indeed, numerous first-time buyers, private equity firms and strategic investors have jumped into the market. Here’s a look at some of the government IT consulting M&A deals that ChannelE2E has tracked:
December 2022: IBM acquired Octo.
November 2022: Cadmus acquired Wheelhouse Group, a provider of IT modernization, customer experience (CX) and DevSecOps services to the government.
November 2022: Enlightenment Capital acquired Agile Defense, a digital transformation solutions provider to the Department of Defense and other federal customers.
November 2022: Edgesource acquired Auspex, which provides advanced data analytics, cybersecurity and management consulting services to the intelligence community.