Evergreen Services Group is acquiring VirtualArmour, a managed security services provider (MSSP). Financial terms of the deal, which is expected to close in the third quarter of 2021 or sooner, were not disclosed.
This is technology M&A deal number 358 that MSSP Alert and sister site ChannelE2E have covered so far in 2021.
Evergreen Acquires VirtualArmour: More Details
Evergreen Services Group has extensive experience in the MSP market, having acquired or invested in more than two dozen IT service providers, as tracked by ChannelE2E. However, this is Evergreen's first MSSP acquisition.
VirtualArmour is headquartered in Colorado, but the MSSP's footprint and security operations center (SOC) team extends to Europe. Rumors about VirtualArmour potentially being for sale have circulated on and off since May 2019. The MSSP was growing at more than 100 percent (quarterly, year over year) through late 2018, though MSSP Alert does not have more recent financial information on the business.
Under Evergreen Services Group's ownership, Virtual Armour will continue to operate independently under its existing leadership team led by CEO Russ Armbrust.
Among the next potential moves to watch:
- Evergreen could acquire additional MSSPs and tuck them into VirtualArmour or run acquired MSSPs independently of VirtualArmour.
- Also, VirtualArmour will become a master MSSP of sorts -- providing the cybersecurity backbone for Evergreen's portfolio of MSP businesses and their end-customers.
Evergreen Head of M&A Ramsey Sahyoun confirmed the scenarios above in an email exchange with MSSP Alert.
Evergreen Acquires VirtualArmour: Executive Perspectives
In a prepared statement about the M&A deal, Evergreen CEO Jeff Totten said:
"We are excited to expand our cybersecurity capabilities by joining forces with VirtualArmour. From our first interaction, we were impressed by Russ, the VirtualArmour team and the company they have built. We look forward to partnering with the VirtualArmour team to bring a comprehensive managed cybersecurity offering to Evergreen's customers."
Added VirtualArmour's Armbrust:
"Evergreen is a proven growth partner which will bring long-term vision and resources to support our growth while we continue independent operations. Evergreen will enable us to continue providing great service to our customers while we expand our capabilities in furtherance of our mission to be the industry's leading provider of managed security services."
Noted VirtualArmour CTO Andrew Douthwaite:
"VirtualArmour's success stems from our absolute dedication to client satisfaction and world-class service. With Evergreen's investment, we are further affirmed in the quality of our company, our team, and our abilities as a premier cybersecurity managed services provider. It will be exciting to continue building VirtualArmour with our new partner Evergreen!"
Concluded Evergreen's Sahyoun:
"With the ever-increasing importance of cybersecurity for all businesses, we knew we wanted to find an MSSP to partner with, and we think VirtualArmour is a perfect fit. We're excited to support VirtualArmour in growing its business alongside our MSPs and expanding the company's partner program."
Capstone Partners, an independent, full-service middle market investment bank, acted as the exclusive financial advisor to VirtualArmour, the seller says.
