In 2024, Evergreen Services Group has experienced its biggest growth year yet, marking a major milestone in its strategy of acquiring Managed Service Providers (MSPs) globally. With 25 acquisitions under its belt, including significant moves in the U.K., Australia, and beyond, Evergreen has positioned itself as a leading player in the MSP acquisition space. In this post, we’ll dive into the company’s growth strategy, its expansion into new markets, and its commitment to long-term success for its MSPs.
Evergreen’s Rapid Expansion in 2024: A Record Year
Evergreen Services Group has made remarkable strides this year, acquiring 25 MSPs across various global markets. This surge in acquisitions includes notable deals with companies in Australia, the U.K., and other regions. The most recent acquisitions—ITBuilder, Certum, and CIS Ltd., all based in the U.K.—represent Evergreen’s ongoing efforts to solidify its presence in the region.
Why the U.K. and Australia?
These markets have been somewhat underserved in terms of MSP acquisition activity, creating a unique opportunity for Evergreen. While North America is heavily saturated with multiple acquisition players, the U.K. and Australia/New Zealand markets had a gap in options for MSPs. This allowed Evergreen to step in as a first mover, offering a solution to MSPs that value their independence and legacy.
Evergreen’s Vision: A Long-Term Approach to MSP Acquisitions
Craig Fulton, advisor for brand, M&A, and community at Evergreen, explains that the company’s approach is rooted in sustainability and long-term growth. Rather than seeking quick financial returns, Evergreen is focused on building something that lasts for generations.
Key Elements of Evergreen’s Acquisition Model:
- Employee Retention: Evergreen’s strategy focuses on keeping the people who drive success within acquired MSPs in place. This ensures a smooth transition and maintains continuity for clients.
- Preserving Legacies: Unlike some acquirers who prioritize short-term gains, Evergreen offers MSPs the opportunity to continue their operations with support and resources to grow long-term.
- No Quick Flips: Evergreen’s model is long-term; they’re not interested in selling off acquired companies quickly. The focus is on sustained growth and empowering MSPs to thrive in a changing market.
As Fulton notes, “We’re here to build something sustainable and long-lasting. We’re not here for the quick flip; we’re committed to helping our MSPs thrive for the long term.”
The Lyra Technology Group Umbrella: Ensuring Independence with Global Resources
The companies acquired by Evergreen are brought under the Lyra Technology Group umbrella. While they operate independently, these MSPs benefit from Evergreen’s global resources and expertise. Lyra Technology Group plays a key role in streamlining vendor contracts, improving pricing strategies, and assisting with talent acquisition.
For many MSPs, this network offers access to resources that might otherwise be unavailable to smaller businesses. By pooling knowledge and expertise across a global platform, Evergreen ensures that each MSP can thrive while retaining its core values and brand identity.
Understanding Evergreen’s Success in the U.K. and Australia Markets
The decision to focus on international markets, such as the U.K. and Australia, was based on thorough market research. Prior to making any acquisitions, Evergreen conducted years of analysis to understand the size and potential of these markets. One standout observation was the growth potential for advanced cybersecurity services in the U.K., an area that remains underdeveloped compared to North America.
For instance:
- The U.K. market is still catching up with the technology adoption trends seen in North America, presenting an opportunity for Evergreen to lead in cybersecurity and other advanced services.
- MSP growth in the U.K. has been accelerating, particularly with businesses increasingly adopting the managed services model.
Evergreen’s strategic entry into these markets is designed to address gaps in services and create opportunities for long-term partnerships with clients.
Differentiating Evergreen from Other M&A Players
While many MSP acquirers operate on a short-term timeline, driven by investor expectations for quick returns, Evergreen stands apart with its long-term focus. This is a crucial differentiator in the competitive M&A landscape.
- Long-Term Commitment: Evergreen’s acquisitions aren’t about flipping businesses for a fast profit. Instead, they’re about integrating MSPs into a sustainable model that nurtures their growth over time.
- Empowering MSPs: The company doesn’t impose rigid operational changes but instead provides tools and support to help each MSP improve its operations, such as contract negotiation and sales recruitment.
This approach ensures that Evergreen’s MSPs can preserve their autonomy while benefiting from the resources and support they need to succeed.
Evergreen’s 2025 Goals: Continued Global Expansion
Looking ahead to 2025, Evergreen plans to double down on its global M&A strategy. Here are some of the goals for next year:
- Doubling Acquisition Numbers: Evergreen plans to acquire twice as many MSPs in 2025, continuing its expansion in North America, the U.K., and potentially Ireland.
- Enhanced Service Offerings: Evergreen is looking to expand its service offerings, particularly in cybersecurity, AI, and customer experience. As the regulatory landscape evolves, Evergreen aims to keep its MSPs at the cutting edge of compliance and customer protection.
- AI Integration: With the rise of AI in business operations, Evergreen is working on leveraging AI to enhance both customer experience and operational efficiency within its MSP network.
Conclusion
Evergreen Services Group has had a banner year in 2024, acquiring 25 MSPs globally and further solidifying its position as a leader in the MSP acquisition space. Through strategic, long-term acquisitions, Evergreen is not only helping MSPs grow but also creating a sustainable and supportive ecosystem for businesses to thrive. With a bold vision for 2025, Evergreen is set to expand further, introducing new cybersecurity and AI-driven services to its portfolio, ensuring its MSPs stay competitive in an ever-evolving market.
Relevant Links for Further Reading:
- Evergreen Services Group Acquisitions
- M&A Strategies in the MSP Industry
- Expanding into the U.K. MSP Market
Photo credit: CRN
