Sale of Telecom business allows the company to sharpen its focus on its core strengths of providing mission-critical managed IT services to mid-enterprise customers.
Pittsburgh, PA (Nov 18, 2021) – Magna5, a national provider of managed IT services and a NewSpring Holdings platform company, announces the sale of its Telecom business enabling it to focus solely on building and growing its Managed IT Services business as the centerpiece of its strategy. Increasing customer demand for Magna5’s differentiated, high-touch managed IT services coupled with the company’s significant investments in technology, operating capabilities, and sales and marketing over the past year have resulted in the company achieving organic sales growth of more than 20% in 2021.
“I’m proud to lead our Magna5 team as we focus our efforts on executing our strategy to build a market-leading Managed IT Services business,” says Bob Farina, CEO of Magna5. “The sale of our Telecom business allows our organization to focus where we see the greatest opportunity for growth going forward. We are investing significantly in our organization to enhance our offerings for cybersecurity, data recovery, cloud services, and many other areas so we can better service the needs of our rapidly growing customer base. Finally, I would like to thank the dedication of the Telecom business’s employees and customers that we had the opportunity to work with and serve during our ownership.”
Backed by NewSpring Holdings, Magna5’s Managed IT Services business is poised for strong organic and acquisitive growth. Magna5 acquired New York-based SpinnerTech in May and is pursuing additional acquisition opportunities to enhance capabilities and expand its reach. “The demand for managed IT services in the lower middle-market is paving the way for Magna5’s booming organic growth,” says Jim Ashton, General Partner at NewSpring Holdings. “At the same time, the market is extremely fragmented, which provides an exciting opportunity for us to leverage our existing platform and execute our M&A strategy to build Magna5 into an even more formidable managed IT services player.”
Magna5, a NewSpring Holdings platform, provides managed IT services, cybersecurity, private and public cloud hosting, backup and disaster recovery and other advanced IT services to mid-market and enterprise customers, including leaders within the education, healthcare, government, financial services, manufacturing, and other industry segments. Headquartered in Pittsburgh, PA, Magna5 has customers nationally. For more information, visit www.magna5global.com.
About NewSpring Holdings
NewSpring Holdings, NewSpring’s dedicated holding company with a strategy focused on control buyouts and platform builds, brings a wealth of knowledge, experience, and resources to take profitable, growing companies to the next level through acquisitions and proven organic methodologies. Founded in 1999, NewSpring partners with the innovators, makers, and operators of high-performing companies in dynamic industries to catalyze new growth and seize compelling opportunities. The Firm manages over $2 billion across five distinct strategies covering the spectrum from growth equity and control buyouts to mezzanine debt. Partnering with management teams to help develop their businesses into market leaders, NewSpring identifies opportunities and builds relationships using its network of industry leaders and influencers across a wide array of operational areas and industries. Visit NewSpring at www.newspringcapital.com.