The acquisition closed on April 30, 2023. Terms of the transaction were not disclosed, and they are not expected to have a material impact on ePlus' fiscal year 2024 results.
This is technology M&A deal number 118 that MSSP Alert and sister site ChannelE2E have covered so far in 2023.
ePlus, founded in 1990, is based in Herndon, Virginia. The company has 1,751 employees listed on LinkedIn. ePlus' areas of expertise include IT security, cloud computing and managed services.
NSG, founded in 1999, is based in Nashville, Tennessee. The company has 22 employees listed on LinkedIn. NSG's areas of expertise include email encryption, online backup and disaster recovery.
CCI, founded in 1955, is based in Iron Mountain, Michigan. The company has 877 employees listed on LinkedIn. NSG's areas of expertise include cybersecurity, network engineering and network automation.
What the Acquisition Means for ePlus
The acquisition enhances ePlus' engineering, sales and services delivery capabilities specific to the services providers industry, the company said. In doing so, the acquisition could help ePlus accelerate its U.S. growth.
Mark Marron, ePlus' CEO, commented on the acquisition:
"ePlus has a long track record in the service provider space. This acquisition will further expand our national presence in this important end-market and help capture opportunities resulting from the federal government's broadband funding initiatives. NSG has an excellent reputation in the market, a very capable workforce and a solid customer base that will benefit from ePlus' broadened portfolio of offerings. We welcome our new NSG employees to the ePlus family and look forward to serving our hundreds of new customers."
Furthermore, the acquisition gives ePlus a Cisco master service provider technology specialization, the company said. As such, it helps expand ePlus' market presence with broadband services providers.
ePlus Boosts Net Sales in First Nine Months of Fiscal Year 2023
The acquisition of certain NSG assets comes after ePlus recorded $1.58 million in consolidated net sales in the first nine months of FY23, which represented a 15% year-over-year increase.
Other notable financial milestones that the company reported during this period include:
- Technology segment net sales of $1.53 million, up 16.6% year over year
- Service revenues of $195.7 million, up 9.4% year over year
- Adjusted gross billings of $2.36 billion, up 18.9% year over year
ePlus offers network, endpoint, cloud and other security solutions. It has established partnerships with CrowdStrike, Fortinet and other cybersecurity companies. Also, ePlus employees have earned more than 1,700 technical certifications from various technology vendors.