Netrix, a provider of managed and professional IT services, is on a roll with its recent acquisitions. According to Don Penland, vice president of corporate development at Netrix, the company’s acquisitions are aimed at turbocharging their organic growth.
“We’re continuing to grow and add people organically. And we’re making acquisitions to add to that organic growth. We do acquisitions to add scale, strategic technologies, or geographical presence,” Penland explained.
Netrix recently closed the acquisition of the managed IT services business division of Contegix, expanding its services scale and establishing a presence in the Northeast and Mid-Atlantic regions of the U.S. This follows another acquisition in late December of the IT services business unit of Prosum, giving Netrix a foothold on the West Coast.
Penland emphasized that these acquisitions align well with the core offerings of Prosum and Contegix, allowing them to focus on their respective strengths. Netrix sees this as an opportunity to double down on its managed services and services desk, catering to larger clients.
Looking ahead, Netrix is in talks with potential acquisition targets to further enhance its organic growth strategy. Penland reiterated, “Our acquisitions are meant to turbocharge our organic growth. We’re continuing to grow and add people organically. And we’re making acquisitions to add to that organic growth. We do acquisitions to add scale, strategic technologies, or geographical presence.”
While the financial details of the latest acquisition were not disclosed, Penland mentioned that it was funded through a combination of external and internal resources. Netrix was recapitalized by OceanSound Partners in August, a private equity firm based in New York.
Penland also noted the ongoing trend of MSP consolidation in the industry, predicting that it will continue for the foreseeable future. “I don’t see mergers and acquisitions winding down any time soon. If you are an MSP, you’re getting calls. This will continue for the next two years,” he said.