The new year brings new mergers & acquisitions (M&A) for the managed service provider (MSP) and IT vendor space. Since the end of the last business quarter, the mergers and acquisition space has seen several moves that will help a number of companies provide improved and innovative services to their customers.

In this recent M&A update from Channel Insider, we recap the latest moves driven by business strategies to propel organizations into 2025 and beyond.

Flexera acquires NetApp’s FinOps business

Flexera, a technology spend and risk management company, has added to its FinOps portfolio by acquiring NetApp’s FinOps business, Spot by NetApp FinOps.

Through this acquisition, Flexera will strengthen its ability to better serve customers and partners seeking to manage the increasing costs of multi-cloud and FinOps needs across a broad range of services, including hybrid cloud, SaaS applications, and containers.

“Our acquisition of Spot is the next step in Flexera’s strategic plan to provide organizations with a full panorama of their technology spend and risk across the entire IT ecosystem,” said Jim Ryan, President and CEO of Flexera. “We want to make it easy for anyone to find and analyze any data related to spend and risk for any kind of technology, anywhere it lives.”

The Spot solutions will provide continuous automation, optimization, and insights on an organization’s cloud infrastructure and applications.

Lenovo acquires Infinidat

In an effort to expand its enterprise storage portfolio, Lenovo has acquired Infinidat, a global provider of high-end enterprise storage solutions.

This acquisition is a part of Lenovo’s growth strategy to bring differentiated technology solutions to market and further strengthen Lenovo’s enterprise storage offerings globally. Additionally, it will help Lenovo deliver innovative storage solutions to meet the evolving needs of modern data centers.

“Lenovo offers a comprehensive range of storage solutions designed with a customer-centric, data-first approach to meet diverse enterprise needs,” said Greg Huff, CTO, Lenovo Infrastructure Solutions Group. “With the acquisition of Infinidat, we are excited and well-positioned to accelerate innovation and deliver greater value for our customers. Infinidat’s expertise in high-performance, high-end data storage solutions broadens the scope of our products, and together, we will drive new opportunities for growth.”

WatchGuard acquires ActZero

Unified security solutions provider WatchGuard has recently acquired ActZero, a provider of managed detection and response (MDR) services.

The acquisition will assist WatchGuard with expanding and maturing its innovative 24/7 MDR service and advance its mission to deliver more MSP-enabling services.

“We realized the need to scale rapidly as we have gained traction throughout the year with our MDR service,” said Andrew Young, WatchGuard’s chief product officer and SVP of product management. “The acquisition of ActZero allows WatchGuard to add capacity, scalability, and new technology that will enable our MDR services to expand to the full WatchGuard portfolio and third-party security products. With additional scale, we can handle a larger partner base efficiently, building confidence with our partners so they can easily add more services as we expand our MDR capabilities. ActZero has built its service with this kind of scaled customer experience in mind.”

AvePoint acquires Ydentic

Data security, governance, and resilience company AvePoint recently announced the acquisition of Ydentic, an organization that specializes in centralized multi-tenant management for MSPs.

Through this acquisition, AvePoint will be able to continue the evolution of Elements, their MSP platform, for greater profitability, increased operational efficiency, scalability, and new security-centric recurring revenue streams.

“We are thrilled to welcome Jorn Wittendorp and the Ydentic team to AvePoint,” said Dr. Tuanyi Jiang (TJ), CEO and Co-founder of AvePoint. “This acquisition aligns perfectly with our strategic priority to scale and expand our channel ecosystem. Together, we will enhance automation, service management, and reporting and data insights capabilities for MSPs, creating further competitive differentiation and economic opportunity for our channel partners.”

DoiT announced acquisition of LiveDiagrams

Leading global cloud optimization company DoiT recently announced the acquisition of LiveDiagrams, a cloud infrastructure visualization and analysis software.

This acquisition will provide a boost to DoiT Cloud Intelligence, a comprehensive multi-cloud platform, and provide customers of that platform with advanced functionality to map, monitor, and optimize their cloud architectures, along with strengthening DoiT’s ability to deliver true cloud transformation for those customers.

“Acquiring LiveDiagrams aligns with our mission to empower DoiT Cloud Intelligence customers with intelligent solutions for cloud optimization,” said Vadim Solovey, CEO of DoiT. “By integrating their innovative technology with our Cloud Management and FinOps platform and expertise, we’ll provide clients with unparalleled visibility and control over their AWS, Google Cloud, and Azure cloud environments.”

ACP CreativIT acquires Mindsight

Managed services provider ACP CreativIT has recently acquired Mindsight, a Chicago-based IT consulting firm with expertise in Cisco technology, cloud services, cybersecurity, and managed services.

“We are thrilled to welcome Mindsight into the ACP CreativIT family,” said Matt Zafirovski, CEO of ACP CreativIT. “This acquisition represents a significant step forward in our mission to provide best-in-class technology solutions to our clients, acting as a trusted technology advisor. Mindsight’s expertise in delivering innovative, enterprise-level managed solutions to the mid-market, along with its commitment to customer success, aligns perfectly with our values and strategic goals.”

This recent acquisition by ACP CreativIT is the fourth in its strategic growth plan. Other integrations include Camera Corner Connecting Point, Citon Computer Corp., and Versatile Communications.

Cytracom acquires Telivy

Provider of infrastructure software for MSPs Cytracom has acquired Telivy to help deliver a comprehensive technology platform for MSPs. The move aims to accelerate Cytracom’s expansion into Security and Risk Management (SRM), complementing its established Secure Access Service Edge (SASE) and Unified Communications as a Service (UCaaS) solutions.

“This acquisition represents the next phase in our mission to empower MSPs with comprehensive critical infrastructure solutions,” said Zane Conkle, CEO of Cytracom. “As we continue to evolve our platform, we’re focused on delivering innovations that help our partners effectively communicate cybersecurity value to their clients and ultimately grow their businesses. The addition of Security and Risk Management capabilities addresses a critical need in the market, and we’re excited about the advancements this will bring to our partners.”

Through the incorporation of Telivy’s technology, Cytracom will enhance its platform with advanced capabilities in attack surface management (ASM) and data security posture management (DSPM), enabling MSPs to better serve their clients’ security and compliance needs.

Valeo Networks acquires Verus Technology Solutions

Valeo Networks, a managed security service provider (MSSP), has acquired Verus Technology Solutions to expand their presence in the Bay Area market and enhance their portfolio by adding valuable robotic process automation (RPA) capabilities.

“Our acquisition of Verus Technology Solutions is a strategic expansion into the Bay Area,” said Travis Mack, CEO of Valeo Networks. “This move not only broadens our reach into a key market, but also aligns with our vision to offer comprehensive managed IT services nationwide. We are thrilled to welcome Verus Technology Solutions into our family and look forward to the opportunities this brings.”

Verus Technology Solutions will bring its expertise in RPA and innovative IT solutions, particularly in the financial AEC (architecture/engineering/construction), and legal sectors to Valeo Networks.

Darktrace to acquire Cado Security

AI-enabled cybersecurity provider Darktrace recently announced the proposed acquisition of Cado Security, a UK-based cyber investigation and response solution provider for the hybrid and multi-cloud world. The acquisition is subject to receipt of regulatory approval and is expected to be completed in February.

Through this acquisition, Darktrace will accelerate the growth of Cado’s existing products through investment while combining Cado’s forensic investigation technology with Darktrace’s existing ActiveAI Security Platform. This will enhance data collection across cloud environments to better defend customer’s infrastructures.

“At Darktrace, we have a clear and ambitious strategy: to develop best-in-class cybersecurity solutions for our customers that keep them safe through continuous innovation,” said Jill Popelka, Darktrace CEO. “The addition of Cado’s deep expertise in cloud-based data collection and forensics will enhance our ability to protect customers, ensuring they can operate securely and confidently across all areas of their business. Together, Darktrace and Cado will help customers quickly and effectively prevent and deter cyber threats, maintaining resilience in a fast-evolving threat landscape.”

Darktrace was previously acquired by leading software investment firm, Thoma Bravo, in October 2024.

As part of their business strategies in 2025, organizations are also taking stock of which technologies and services they should prioritize in the new year. Discover which technologies IT leaders want from solution providers in 2025.

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