MSP Corp Investments, a Canadian company focused on acquiring and partnering with managed service provider (MSP) businesses in the information technology (IT) sector, has raised $35 million in growth capital.
The Guelph, Ontario-based firm’s financing was led by BDC Capital’s Growth Equity Partners’ Fund II, and supported by CIBC. MSP Corp plans to use the fresh funding to support its acquisition and partnership efforts.
“Our mission … has been to build the most recognized network of MSPs in the [IT] sector throughout Canada.”
-Jason Dacosta, MSP Corp
“Our mission from the very beginning has been to build the most recognized network of MSPs in the information technology sector throughout Canada,” said Jason Dacosta, co-founder and president of MSP Corp. “This funding round will help us achieve that vision by allowing us to extend our complete toolset of resources and support to a growing number of MSPs as we continue to scale via acquisitions.”
MSP Corp acquires and partners with high-performing Canadian MSPs, offering these firms the resources, technology, and business support to grow their businesses. According to ChannelE2E, MSP Corp has acquired eight companies to date. The firm’s partner companies provide a variety of services, including cybersecurity, cloud hosting, managed network services, and mobility management.
The Guelph-based company, which also has a presence in Edmonton, was founded in 2020 by Dacosta and Ravi Ramharak, who serves as MSP Corp’s managing director of mergers and acquisitions (M&A). According to MSP Corp, “unlike other buyout firms, MSP Corp owners and team members have been working in the technology industry since [the] early 2000s and have built multiple IT businesses together.”
Prior to co-launching MSP Corp, Dacosta worked in private equity for Québec-based Novacap and New York’s 747 Capital. He also served as CFO of Québec-based telecommunications startup Oxio, which recently raised a $25 million CAD Series A round.
Before he joined MSP Corp, Ramharak previously co-founded and exited Alberta-based Omega IT, an MSP focused on the healthcare and manufacturing sectors, and served as chief information officer for Edmonton’s Mtek Digital.
According to Ramharak, MSP Corp looks to acquire and partner with MSPs that have “well-rounded cultures.” He added that, when evaluating potential acquisition targets, MSP Corp considers MSP’s operating profit, recurring revenue, customer and revenue retention, growth, and customer concentration.
MSP Corp claims it offers different models and payment options for MSP owners seeking to retire, cash-out a portion of their business, or diversify future risk.
“We have been thoroughly impressed by the organization, its accomplishments to date and the incredible growth the business has been able to achieve since its inception,” said Michael Notto, growth equity partner at BDC Capital. “We look forward to supporting MSP Corp as the company continues on its rapid expansion trajectory, both organically and through continued acquisitions, to reinforce its position as a premier brand in Canadian IT managed services.”
According to Raymond Kam, senior manager of mid-market commercial banking at CIBC, the bank has worked with MSP Corp since its start in 2020.
Feature image of Jason Dacosta and Ravi Ramharak from MSP Corp