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1Covad and Megapath merge, buy SpeakEasy

Shortly after announcing a merger between Covad and MegaPath, the two companies together said they would buy SpeakEasy to create what it calls " a next generation Managed Services Local Exchange Carrier." Together the newly merged company services over 85,000 customers.

2PCMall buys Network Services Plus Inc.

Online PC retailer PCMall shelled out $9.1 million to diversify into the MSP market with the pickup of Network Services Plus, a hosted data center and managed IT service provider.

3Sirius Computer Solutions Inc buys MSI Systems Integrators

IT solutions provider Sirius Computer Solutions rounded out its offerings by purchasing the integration capabilities and expertise of MSI Systems Integrators. Sirius reports that the deal will push its annual sales over $1 billion annually.

4Telephone and Data Systems buys TEAM Technologies.

Telephone and Data Systems spent $47 million this year to purchase data center service provider TEAM Technologies in a deal that will add colocation, disaster recovery and data security to its portfolio.

5Avnet, Inc. buys Bell Microproducts Inc.

Distie giant Avnet shelled out a whopping $631 million for the privilege of purchasing competitor Bell Microproducts in a move that further consolidates the distribution market.

6Rackspace Hosting buys Cloudkick

Web hoster Rackspace is positioning itself for future growth and adjustments with the acquisition of Cloudkick, a cloud server management business.

7IBM buys National Interest Security Company

IBM continues to show its chops in serving the federal cybersecurity and logistics markets. This year it purchased National Interest Security Company, of Fairfax, VA, a deal that will likely play a part in future ‘smart government’ consulting gambits by IBM.

8Architel Holdings LLC buys Applied Resource Technologies Inc.

Break-fix companies take note–the flat fee companies are doing well enough to start acquiring. Flat-fee MSP specialist Architel Holdings reportedly spent seven figures to buy its break-fix competitor Applied Resource Technologies. We’ll see how the integration goes.

9All Covered buys The IT Pros

All Covered made waves earlier this year with the announcement that it would begin an aggressive multi-year acquisition campaign to build its MSP empire. Its big purchase this year was of San Diego-based The IT Pros.

10NTT buys Dimension Data

We’ve mostly focused on US deals in this list, but NTT’s massive $3.2 billion purchase of South African-headquartered Dimension Data shows how truly global the IT services market has truly grown.