7 Mile Advisors Active in Microsoft Ecosystem
By Steve Buffington | March 25, 2019
7 Mile Advisors acted as the exclusive sell-side advisor to SADA Systems in its divestiture of its Microsoft Business Unit to Core BTS. The acquisition is part of Core’s ongoing strategy to expand its service portfolio across the United States, which was accelerated by Tailwind Capital’s investment in Core in 2018. SADA’s Microsoft practice is a premier Microsoft Cloud Solutions Provider (CSP) with multiple gold competencies.
“This acquisition strengthens our strategic partnership with Microsoft and expands our relationships with many tremendous clients,” said Core CEO Walter Cook. “Our talented team will continue to offer our clients the industry-leading services and solutions that help them advance their businesses through technology. I am excited to welcome the employees to the Core family.”
The addition of this business unit expands Core’s existing capabilities in IT services and other CSPs focused on Network, Data Center, Collaboration, and Security. John Cooper, a director at 7 Mile Advisors, said, “Microsoft continues to dominate the productivity space and is experiencing accelerated growth in the cloud through its Azure offering. This success has made companies like SADA’s Microsoft business highly valuable in the fragmented Microsoft partner ecosystem. We expect consolidation to continue, specifically within Azure.”
This latest deal is the latest in a string of several successful transactions that 7 Mile has led in the Microsoft ecosystem:
Arrow Digital / Softvision LLC. – In Q3’18, 7 Mile acted as the exclusive sell-side advisor to Arrow Digital in their sale to SoftVision LLC. Arrow Digital has a strong Microsoft .NET capability and offers scalable custom software that delivers business process automation, digital experience, and RPA solutions. Arrow joins Softvision in enhancing the digital experience for top brands.
Intellinet Corp. / FPT Corp. – In Q3’18, FPT acquired a majority share in Intellinet with 7MA acting as the exclusive sell-side advisor to Intellinet, a Microsoft National Solution Provider. The partnership between FPT and Intellinet enables both companies to deliver end-to-end strategic IT services on a worldwide scale and help clients accelerate their Digital Transformation Journey.
Sonoma Partners / Ernst & Young – In Q1’18, Sonoma Partners, a leading consulting firm specializing in Microsoft Dynamics and Salesforce CRM solutions, was acquired by Ernst & Young. The acquisition enhances EY’s ability to serve a client’s full digital transformation agenda while providing a high-quality CRM delivery capability that EY consultants around the globe can leverage.
There are additional parts of the Microsoft ecosystem that are also seeing increased level of buying and selling activity. With the rapid growth in Microsoft Office 365 and Azure adoption, Microsoft consulting and technology firms with capabilities in these areas are becoming critical partners. Furthermore, as more and more businesses and consumers transition toward a cloud network, security has become paramount. Interestingly, the adoption of stronger security measures such as single sign-on have lagged considerably. As businesses look to shore up security in their networks, this could be a compelling vertical in the near future.
Author: Steve Buffington, Associate
About 7 Mile Advisors
7 Mile Advisors provides Investment Banking & Advisory Services to the Business Services & Technology Industries globally. 7 Mile Advisors advises on M&A and private capital transactions, and provides market assessments and benchmarking. As a close-knit team with a long history together and a laser focus on our target markets, 7 Mile Advisors helps its clients sell companies, raise capital, grow through acquisitions, and evaluate new markets. For more information, including research on the M&A markets, visit www.7mileadvisors.com.
All securities transactions are executed by 7M Securities, LLC, member SIPC/FINRA.