MSPSN Sold to Investment GroupBy Lawrence Walsh | Posted 2009-12-09 Email Print
High Street Technology Ventures, an investment group headed by former CompTIA executive Gerard Kane, is buying the managed services support and training network founded by Amy Luby.
High Street Technology Ventures, a consortium of investors, is buying MSPSN, one of the more active networks of managed service providers founded by MSP maven Amy Luby, for an undisclosed amount.
The announcement of the sale is happening this morning in Washington, D.C., at the CompTIA MSP Business Simulation Experience, a managed services training program facilitated by MSPSN.
Under the terms of the agreement, Gerard Kane will assume the CEO post and guide the evolution and growth of the organization. Luby will assume a seat on the company’s new board of directors and assist in the transition to new management.
Kane, a former CompTIA executive, is leading the investment group acquiring MSPSN. He says the organization is particularly appealing because of its potential for providing valued-added and aggregated support services to MSPs, as well as training and enablement services.
"My intention is to expand it rapidly," Kane said in an interview yesterday. "They have a solid core of partners, but maybe haven’t grown as rapidly as they should have."
Luby, a solution provider turned managed services maven based in Omaha, Neb., founded MSPSN in 2007. Over the last two years, Luby has grown MSPSN into a vibrant community of solution and managed service providers that leverage the group’s support services as well as its training program to assist in growing their managed services businesses.
Kane, who was involved in the development of such services companies as Perimeter Security, says few—if any—managed services groups are providing end-to-end training and support services in the way MSPSN is, and that MSPSN is unique in its potential to grow into a holistic managed services community.
While the High Street investment group has plans for how to grow MSPSN, Kane says there are probably many issues that haven’t been thought of. The first initiatives are plans for announcement in the first quarter of 2010.
"Our goal is to make it easier for MSPs to do business and make more money," Kane says.
Word of the acquisition started leaking to the MSP and VAR community yesterday. Several MSPs were taken aback by the deal, and are worried that it might disrupt their existing relationship and operational model with MSPSN. Some MSPs report that MSPSN rivals are already trying to convert them to competitive services.
Existing MSPSN members are bullish on the deal, believing it will enhance the organization.
"This agreement is very encouraging to us, representing a continuation and enhancement of the tools and processes that enable us to deliver top quality services to our customers," said Vince Tinnirello, president of Anchor Network Solutions, in a statement.