NetGain Technologies Acquires Fellow MSP 4EOS

‘4EOS has a business model that we understand. They have a customer base which is loyal to them and have a talented employee base. We’re not looking for companies that are perfect today, but ones that are working to be perfect over time,’ says NetGain CEO Tim Burke.

MSP NetGain Technologies has acquired fellow MSP 4EOS in a move aimed at helping NetGain expand its presence in the Midwest.

For NetGain, 4EOS is its fifth acquisition since it was acquired in December 2018 by Evergreen Services Group, said Tim Burke (pictured), CEO of the Lexington, Ky.-based MSP.

Evergreen Services Group, a San Francisco-based private equity-backed holding company focused on managed services and government services, has made eight acquisitions in the IT services space, including NetGain, and purchased a number of other MSPs via those eight.

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Under Evergreen NetGain acquired Raleigh, N.C.-based Progressive Computer Systems in late 2019, Ohio-based Arnet Technologies and LK Tech, and Jacksonville, Fla.-based TruTechnology.

Financial terms of the 4EOS deal were not disclosed.

4EOS brings NetGain a small IT services company with hosting, backup and managed services that bring significant value to SMB customers in the Fort Wayne, Ind., area, Burke told CRN.

With the acquisition, NetGain, a member of the Elite 150 on the CRN MSP 500 list, now has branch offices in Kentucky, Tennessee, Ohio, North Carolina, Missouri, Arkansas, Florida and Indiana.

4EOS, founded about 19 years ago, is a profitable company, Burke said.

“4EOS has a business model that we understand,” he said. “They have a customer base which is loyal to them and have a talented employee base. We’re not looking for companies that are perfect today, but ones that are working to be perfect over time.”

Burke said that he and 4EOS founder and CEO Jeremy Holle started discussing the possibility of NetGain acquiring 4EOS about a year ago after being introduced by someone in Evergreen.

“We started collecting information about 4EOS,” he said. “Jeremy and I built a pretty good relationship. We started due diligence in February or March of this year.”

Evergreen has been a good partner for NetGain for all its acquisitions, Burke said.

“Their desire is to be America’s best home for business,” he said. “That only happens with acquisitions. And NetGain was acquired by Evergreen as its platform for acquisitions.”

Burke himself came to NetGain by way of Alpine Investors, the parent company of Evergreen that at the time was searching for someone to become NetGain’s CEO. Prior to that, he was a senior vice president at Bank of America.