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Logically acquires Carolinas IT in geographic expansion
The purchase of Carolinas IT is another transaction that demonstrates the active managed services merger and acquisition environment, which has seen more than 30 deals this year.
Logically Inc., a managed service provider based in Portland, Maine, has acquired Carolinas IT, a North Carolina MSP with cloud, security and core IT infrastructure skills.
The deal continues Logically's geographic expansion. The company launched in April, building upon the 2018 merger of Portland-based Winxnet Inc. and K&R Network Solutions of San Diego. Logically in August added a New York metro area company through its purchase of Sullivan Data Management, an outsourced IT services firm.
Carolinas IT, based in Raleigh, provides a base from which Logically can expand in the region, Logically CEO Christopher Claudio said. "They are a good launching pad," he said.
Carolinas IT's security and compliance practice also attracted Logically's interest. Claudio called security and compliance a growing market and one that will continue to expand, given the challenges organizations face with regulatory obligations and the risk of data breaches.
"You can't be an MSP without a security and compliance group," he said.
Carolinas IT's security services include risk assessment, HIPAA consulting and auditing, security training and penetration testing. The company's cloud offerings include Office 365 and private hosted cloud services. And its professional services personnel possess certifications from vendors such as Cisco, Citrix, Microsoft, Symantec and VMware.
Claudio cited Carolinas IT's "depth of talent," recurring revenue and high client retention rate as some of the business's favorable attributes.
Mark Cavaliero, Carolinas IT's president and CEO, will remain at the company for the near term but plans to move on and will not have a long-term leadership role, Claudio said. But Cavaliero will have an advisory role, Claudio added, noting "he has built a great business."
Logically's Carolinas IT purchase continues a pattern of companies pulling regional MSPs together to create national service providers. Other examples include Converge Technology Solutions Corp. and Mission.