We are actively seeking acquisitions with potential to complement our robust product mix, increase our revenues, enhance our margins, expand our geographic sales and service coverage, strengthen our leadership team, provide unique technical resources and expertise, and - above all - help to create meaningful value for our shareholders.
Have an M&A opportunity that we should consider? Please contact us today.
Managed Service Providers
MSPs provide their small and medium-sized business clients with a suite of services, which may include 24/7/365 remote monitoring of networks, disaster recovery, business continuity, data back-up, cyber-security and the like.
There are hundreds of providers of such services in the U.S., most with annual recurring revenue of less than $10 million.
We believe that we may be able to consolidate a number of these MSPs with our existing operation in effort to become one of the more significant providers of these services in the U.S.
Independent Software Vendors
ISVs are publishers of both stand-alone software solutions and integrations that integrate with other third party products. Our interest lies with ISVs selling into the small and medium-sized business marketplace, providing applications addressing e-commerce, mobility, security, and other functionalities.
Since we have expertise in both selling directly to end-users and selling through a sales channel, we believe we can significantly enhance the sales volume of any potential acquisition via our existing infrastructure, our sales channel, and our internal marketing programs. There are several thousand ISVs in North America, constituting a large and significant target base for our acquisition efforts.
Of the hundreds of VARs in the Sage Software sales channel, we are among the ten largest. VARs gross margins are a function of the sales volume they provide a publisher in a 12-month period, and we are currently operating at the highest margins. Smaller resellers, who sell less and operate at significantly lower margins, are at a competitive disadvantage to companies such as ours, and are often amenable to creating a liquidity event for themselves by selling to larger organizations.
This dynamic has enabled us to complete seven acquisitions and/or collaborative agreements in the past four years.
We have benefitted from completing
such acquisitions in a number of ways, including but not limited to: (i) garnering new customers to whom we can upsell and cross-sell our broad range of products and services; (ii) gaining technical resources that enhance our capabilities; and (iii) extending our geographic reach.