ConnectWise has acquired Axcient and SkyKick to enhance data protection and business continuity solutions for Managed Service Providers (MSPs). The integration will focus on maintaining customer experience, minimizing disruptions, and fostering innovation, ultimately contributing to the development of a comprehensive MSP platform, ConnectWise Asio, which will combine various services, including Professional Services Automation, Remote Monitoring and Management, and cybersecurity solutions.
K1 Investment Management announced the acquisition of its portfolio company Axcient by ConnectWise, which gives us some details. Under K1’s investment, Axcient’s annual recurring revenue grew by 7.5x. K1 has realized over $1.8 billion in liquidity in the past ten months, reflecting successful investment strategies in the enterprise software space.
SkyKick coverage gives a little perspective, too. SkyKick, which focuses on helping IT service providers manage cloud infrastructure for small and medium-sized businesses, will see its 142 employees join ConnectWise. The acquisition follows SkyKick’s earlier layoffs of 140 employees.
Why do we care?
I’d previously covered the Axcient acquisition when it was a reported rumor from a credible journalist. The SkyKick news is new and, frankly, I think it is a little more interesting, considering its cloud management component. With the additional sourcing, we get a bit more of a picture of the acquisition – Axicent has been growing rapidly, and SkyKick is 142 people – and has done previous layoffs. I think SkyKick’s acquisition probably includes development expertise to help with Asio.
And remember, without financial terms, assume they were acquired for a six-pack of beer. Don’t inflate exits without data.