2024年第四季度管理服务提供商报告

MANAGEDSERVICE

PROVIDER"MSP"MARKETUPDATEQ42024

NEWYORKILONDONILOSANGELESIPARISIMUNICHSANFRANCISCOIBERLIN⃞DUBAI

Drakestartofindupdatedimage

Onlyboutiqueinglobaltop10*

Deepsectorexpertisein

8coretechverticals

Partner-ownedinvestmentbankwithanentrepreneurialteam

Over500transactionscompleted

incl.numeroustechlandmark

deals

Oneofthelargesttechteams

withseniorprofessionalsinthe

US,EuropeandMiddleEast

9xinvestmentbankoftheyear,

+40xdealoftheyear,

6xleadershipawards

Executingwiderangeof

transactionsincludingStrategic

M&A,PEBuyouts,Private

Placements,BuySide,andCarve

Outsdeals

2

*AsofJanuary2022.Source:Pitchbook,M&Aandprivateplacements,Mid-Market.Europe&NorthAmericaareincluded.

**Formoredetailsregardingawards,pleasevisitand.

STRONGTRANSACTIONTRACKRECORD

OVER500TRANSACTIONSCOMPLETED

*DrAkesTAR

3

4

#DRAKESTAR

ManagingPartner

Munich

+491733930070

ralf.hofmann@

MSP

MSP

ManagingPartnerParis

+33687990537

christophe.morvan@

HASBEENACQUIREDBY

Partner

MSP

MSPMSP

NewYork

+16462453550

sam.levy@

PartnerLondon

+447773052247

gaby.silvestris@

MSP

MSP

InQ42024,privateplacementactivityintheMSPspacesawanotablesurge,drivenbyan

increaseinplatformdeals,coupledwithasignificantriseinM&Adealvaluethatroseto$2.2billionfrom$34millioninQ32024.

StrategicaswellasfinancialconsolidatorscontinuedprioritizingstrengtheningtheircapabilitiesthroughtheacquisitionofITconsultingserviceproviders,which

comprised83%oftotaldealactivityinQ42024.

Strategicbuyersremainactiveinconsolidation,with6ofthetop10playersacquiringatleastfourManagedServiceProviders(MSPs)eachbetween2023and2024,while

theremainingfourinvestedinatleastthreeMSPs.Incontrast,financialinvestorscontinuetofocusonsingleinvestments.

TheglobalMSPmarketvaluereached$305billionin2024andisexpectedtogrowto$571billionby2033,drivenbyincreasingITcomplexitiesanddemandforcost

efficiency.

Source:DrakeStar

5

STRONGMARKETTRAGTIONDESP1TEECONOM1CUNCERTAITY

~7.2%

71$305bn

Top3MostImportantOutcomesAchievedFromManagedServices

Sources:Pitchbook,IMARCGroup

6

ITCOMPLEXITIESANDCOSTEFFICIENCYDRIVINGMANAGEDSERVICESTOREACH$57OB

MANAGEDSERVICESMARKETSIZE(in$Bn)KEYDRIVERS

20242025E2033

#DRAKESTARSources:IMARCGroup,PrecedenceResearch

自

Increasingcomplexity:Theswiftadvancementoftechnology,variedsoftwareenvironments,andtheintegrationofnumerousplatformsaredrivingtheneedformanagedservices.

costEfficiency:Managedservicesimprovecostefficiencyby

optimizingresourceutilizationandreducingoperatingexpenses,

therebyenhancingoverallprofitability.Businessesareincreasingly

choosingtooutsourcetoMspsforinfrastructureandtoolsata

predictablemonthlyfee,ratherthaninvestingincostlyhardwareandsoftware.

cybersecuritychallenges:Therisingincidenceofcybersecurity

threatsisfuelingtheneedforMSPS,whoprovidespecializedsolutionssuchas24/7monitoringandthreatdetection.Theseservicesarevitalforsafeguardingsensitivedataandensuringcompliancewith

regulations.

EnhancedBusinessAgility:ManagedservicesoffertheflexibilitytopromptlyadaptITresourcestochangesinthemarket,customer

requirements,andemergingopportunities.Thiscapabilityallowsforswiftresponseswithoutbeingconstrainedbyfixedinfrastructure.

7

#DRAKESTAR

8

Sources:Pitchbook,DrakeStarAnalysis

Q424M&ADISCLOSEDDEALVALUESURGE

INQ42024,58ANNOUNCEDM&ADEALDEALSINTHEUNITEDSTATESANDEUROPE

2,500

2,000

1,500

1,000

500

0

112123

77

58

48

37

32

34

242624

Q222Q322Q422Q123Q223Q323Q423Q124Q224Q324Q424

LargestDealbyValuein

theQuarter(In$Millions)

DealCount(InFigures)

DealValueofRemainingDeals(In$Millions)

Q42024DEALCOUNT

BYGEO

Total-58

47%

53%

EuropeUnitedStates

DEALCOUNTBYSEGMENT

Q3

2024

Q4

2024

8%4%

5%7%2%

88%

86%

ITServices

Software

CommunicationsandNetworking

CommercialServices

Others

Note:Dealvaluereflectssolelythecapitalinvestedbythosedealsthatdisclosetheirspecificvalue.Notalltransactionsreportdealvalue.

#DRAKESTAR

9

Sources:Pitchbook,DrakeStarAnalysis

THEIRSERVICEOFFERINGS

TOP1OMOSTACTIVESTRATEGICCONSOLIDATORS*

骂

IlNAVISITE

Omindcurvgroup

APIXIT"

PRSIT

TOP1OMOSTACTIVEFINANCIALCONSOLIDATORS**

CD&R

OMERSIprivateEquityTOWERBROOK

centegel

Frontenac

Integris.

PERF。RIVE

options

Includesdealssince2023.*Rankedbytotaldealcount.

**MostfinancialinvestorshavemadeonlyasingleinvestmentinMSPcompanies.Therefore,apartfromthefirstinvestor,restlistedunderthemdonotadheretoanyranking.

STRATEGICBUYERSFROMMULTIPLESECTORSEXPRESS

INTERESTINMSPS

Q42024

REVENUE

($Mn)

ACQulRERCOUNTRY

EV/EB/ITDA

COMPANY

COUNTRY

EMPLOYEES

DATE

DEALS/ZE

ACQulRER

($Mn)

exgi

1,500

--

--

--

Dec-24

Frontenac

800

--

--

--

Dec-24

650

--

--

--

Oct-24

xerox

500

400.0

--

--

Nov-24

398

375.0

0.8

485.0

Dec-24

150

40.8

75.3

1.9

Oct-24

640

--

47.8

--

Oct-24

388

--

--

--

Dec-24

--

--

12.0

--

Nov-24

10

--

1.9

--

⃞NETESSENCE

Dec-24

Note:DrakeStardidnotactasfinancialadvisorontransactionslistedonthispage

#DRAKESTAR

10

Sources:Pitchbook,DrakeStarAnalysis

M&ADEALSINTHEMSPSPACE

Q42024

•ITSavvywasacquiredbyXeroxfor$400milliononNovember20,2024.

•ThisacquisitionreinforcesXerox'scommitmenttoreinventingandexpandingitsITServicesbusiness,whileconsistentlydeliveringinnovativesolutionstoenhanceitsclients'workplaces.

Nov-2024

$400M

ACQUISITIONBY

xeox

•DecskillwasacquiredbyAstek(France)for€43million($47.8million)onOctober1,2024.

•TheacquisitionbroadensAstek'sexpertiseand

considerablystrengthensitsnearshoreandoffshore

capabilitiestomeetthegrowingneedsofitscustomersworldwide.

Oct-2024

$47.8M

ACQUISITIONBY

$75.3M

ACQUISITIONBY

•TheentireissuedsharecapitalofKookaburraTopco

Limited,theholdingcompanyofAtechSupportLimitedwasacquiredbyiomartGroupplcfor£57million($75million)onOctober1,2024.

•Thistransactionstrengthensiomart’sexpertiseinAzure,workplacesolutions,andsecurityservices,enhancingsupportforits10,000customers.

Oct-2024

•SatcomDirectwasacquiredbyGogoBusinessAviationfor$375milliononDecember4,2024.

•ThistransactionadvancesGogo'sgrowthstrategybyexpandingitsmarketto14,000businessaircraft

outsideNorthAmericaanddeliveringsolutionsforallsegmentsoftheBusinessAviationmarket.

Dec-2024

$375M

ACQUISITIONBY

$1.9M

ACQUISITIONBY

•WorkshopITLtd.wasacquiredbyNetEssenceGroupfor£1.5million($1.9million)onDecember5,2024.

•ThisacquisitionenhancesNetEssence'scapabilitiesandmarketreachwithWorkshopIT'sofferings

complementingitsexistingportfolio,creatingastrongplatformforgrowth.

Dec-24

⃞NETESSENCE

•TheITManagedServicesBusinessofCloudCoCo

wasacquiredbyAspireTechnologySolutionsthroughanestimated£9.2million($12million)LBOviaits

financialsponsorLDConNovember1,2024.

•ThisacquisitionstrengthensAspire’UKpresenceandenhancesitsabilitytodeliveradvancedITservices,

securitysolutions,andworkplacetechnologysolutions.

Nov-2024

$12.0M

ACQUISITIONBY

企roLDC

Note:Thisslidepresentsdealsthathavedisclosedtheirsizesandarerankedaccordingly.

#DRAKESTAR

11

Sources:Pitchbook,DrakeStarAnalysis

#DRAKESTAR

12

Sources:Pitchbook,DrakeStarAnalysis

COMPAREDTOQ32024

2,500

14

2,000

1,500

1,000

5

5

4

4

4

500

3

3

2

0

00

Q222Q322*Q422Q123Q223Q323Q423*Q124*Q224*Q324Q424

DealValueofRemainingDeals(In$Millions)

LargestDealbyValuein

theQuarter(In$Millions)

DealCount(InFigures)

Q42024DEALCUNTBYSEGMENT

Total-14

7%

20%

72%

ITConsultingandOutsourcing

SystemsandInformationManagement

NetworkManagementSoftware

Q42024DEALCOUNT

BYGEO

Total-14

36%

64%

UnitedStatesEurope

Note:Dealvaluereflectssolelythecapitalinvestedbythosedealsthatdisclosetheirspecificvalue.Notalltransactionsreportdealvalue.Informationondealcountandvaluebystageisavailable.DrakeStardidnotactasfinancialadvisorontransactionslistedonthispage.

*NodealvaluesdisclosedforQ32022,Q42023,Q12O24,andQ22024.NotransactionstookplaceinH12024.

PEINVESTMENTSINMSPS

Q42024

REVENUE

($Mn)

SELECTINVESTOR

COMPANY

SUBSECTOR

COUNTRY

EMPLOYEES

DATE

DEALS/ZE

($Mn)

ITConsultingandOutsourcing

3,000

Oct-24

--

32.0

CD&R

1,629.4

2,700

SystemsandInformationManagement

Dec-24

2,112.6

TOWERBROOK

1,000.0

2,500

Dec-24

--

ITConsultingandOutsourcing

options

600

Oct-24

--

--

ITConsultingandOutsourcing

Integris.

SystemsandInformationManagement

--

--

600

Dec-24

ITConsultingandOutsourcing

--

--

200

Oct-24

ITConsultingandOutsourcing

--

--

67

Oct-24

SystemsandInformationManagement

--

--

52

Nov-24

ITConsultingandOutsourcing

--

--

33

Oct-24

NetworkManagementSoftware

--

1.6

29

Nov-24

#DRAKESTAR

13

Sources:Pitchbook,DrakeStarAnalysis

PRIVATEPLACEMENTINVESTMENTSINMSPS

Q42024

•Ablockof66.7%ofthesharecapitalofExclusive

NetworksSAwasacquiredbyClayton,Dubilier&

Rice,LLC(CD&R)andPermiraFundsatapriceofatapriceof€18.96pershare,onDecember17,2024.

$2.1Bn

ACQUISITIONBY

CD&R

Dec-24

•CBTS,asubsidiaryofAltafiber,wasacquiredbyTowerBrookCapitalPartnersthroughanLBOonDecember2,2024foranundisclosedamount.

•ThisinvestmentwillenableCBTStodrivegrowthandinnovationbyrapidlyenhancingproductofferingswhilecontinuingtodeliveroutstandingbusinessoutcomes.

Dec-24

2,500

EMPLOYEES

TOWERBROOK

$1.6M

ACQUISITIONBY

•CloudGuardraised£1.23million($1.6million)in

venturefundingfromPraeturaVenturesandNorthernPowerhouseInvestmentFundonNovember6,2024,

•ThefundswillbeusedtogrowtheCyberAcademy,whichwillprovidetrainingandindustryexperiencetotalentofallagesandlevels.

Nov-24

•TaoDigitalraisedanestimated$32millionofSeriesAventurefundingfromVesperCompany,andother

undisclosedinvestorsonOctober23,2024,

•Withthisfunding,TAOexpectstopursuekeyM&Aopportunities,expandglobally,andinvestinitsAI

modellibrarytoenhanceitsproductengineeringanddataservices.

Oct-24

$32.0M

ACQUISITIONBY

600

EMPLOYEES

•OMERSPrivateEquityannouncedthesigningofadefinitiveagreementtoacquireamajoritystakein

IntegrisfromFrontenacCompany,aChicago-basedprivateequityfirmonDec03,2024.

•ThisacquisitionprovidesOMERSwithanopportunity

toentertheITmanagedservicesprovider(MSP)spaceandenhanceitsbusinessservicesportfolio.

Dec-24

OMERSIprivateEquity

Integris.

•OptionsTechnologyLimitedannouncedthereceiptoffundsinaroundoffundingonOctober16,2024.

•Thefundswillsupportthecompany'sglobalexpansionandinnovation,focusingongrowthinkeyareassuchasCloud,Security,AI,High-performanceNetworking,andMarketDataservices.

Oct-24

options

柴

600

EMPLOYEES

#DRAKESTAR

14

Sources:Pitchbook,DrakeStarAnalysis

GLOBALREACHCOMBINEDWITHLOCALPRESENCE

ONEOFTHELARGESTTECHTEAMSACROSSNORTHAMERICA,EUROPEANDASIA

8

offices

5

countries

5OO+

transactions

+4O

DealoftheyearAwards

+3O

partners&

seniorAdvisors

+7O%

cross-bordertransactions

#DRAKESTAR

15

Formoredetailsregardingawards,pleasevisitand.

#DRAKESTAR

MSP

Q42024MARKETUPDATE

WWW.DRAKESTAR.COM

DrakeStarisanaward-winningglobaltechinvestmentbankthathascompletedover500transactionssince2013.DrakeStarglobalteamofseniorprofessionalsacrossofficesinNewYork,London,Paris,Munich,SanFrancisco,LosAngeles,Berlin,andDubai*focusesonmergers&acquisitionsandcorporatefinanceservicesworldwideinConsumer&RetailTechnology,HRTech,DigitalMedia,FinTech,Mobility&Sustainability,Software/SaaS,DigitalServices,andIndustrialTechsectors.

Thisreportispublishedsolelyforinformationalpurposesandisnottobeconstruedasanoffertosellorthesolicitationofanoffertobuyorsellanysecuritiesorfinancialinstruments.Anyforward-lookingstatements,forecasts,oropinionsexpressedreflectcurrentviewsasofthedateofpublicationandaresubject