Cogent Growth Partners Announces Second Year of Record Results as IT Services Prove to be Essential Businesses

Cogent Growth Partners Announces Second Year of Record Results as IT Services Prove to be Essential Businesses

Heated Demand for Managed Services Providers Continued Throughout 2021

ATLANTA – February 17, 2022 – Cogent Growth Partners (CGP), the industry leading M&A advisor for Managed IT Service providers, today announced their second consecutive year of record-breaking financial results. Cogent assisted in the merger and acquisition of 14 deals in 2021 with their expanding community of serial buyers accounting for more than 50% of the closed transactions.

“Widespread demand for well-performing candidate companies continues to stoke the fire in the IT services provider market,” said Rick Murphy, Cogent Growth Partners CEO and Managing Partner. “The last two years have proven that IT services companies are not only essential; they have become as critical to business success as utilities. You simply can’t run a business in any industry without IT strategy and support.”

An analysis of Cogent’s 2021 deal portfolio uncovered three significant trends:

  • Strong demand from Cogent’s independent IT services companies with a thirst for increasing their holdings outpaced activity from private equity (PE) firm clients.
  • Smaller companies comprised the majority of last year’s closed transactions.
  • The majority of the mergers allowed buyers to deepen their penetration of established geographies.

With more than 140 closed transactions, Cogent is the market leader in the mergers and acquisition space for IT services businesses. Cogent’s strong 2021 performance underscores continued consolidation in the IT services space as companies join forces to capitalize on growth opportunities and dominate markets.

“Rather than slow deal flow, the pandemic motivated owners of IT services businesses, including managed services providers, cybersecurity firms, and consulting and integration providers to name a few, to solidify their positions as essential business partners to companies of all sizes,” added Murphy. “Taking the time to understand our buyers’ business priorities and cultures helps us make candidate matches that leverage shared strengths. We expect candidate companies to continue enjoying a sustained seller’s market in 2022.”

About Cogent Growth Partners

Cogent Growth Partners, LLC, the industry-leading M&A advisor for Managed IT Service providers with more than 140 closed transactions, taps into the growth opportunities found in America’s IT businesses. Cogent accelerates the M&A process with a set of proprietary tools and processes that enable buyers and sellers to stay focused on running their respective businesses. Anyone who wants to know why Cogent is different, need look no further than the back of our business card: “Providing Transaction Therapy™ for IT Business Owners Since 2010.” For more information, email [email protected], visit www.cogentmergers.com, or call 678-820-5288.