Dataprise Acquires 360IT Partners: East Coast Expansion

The Deal

Trinity Hunt Partners-backed Dataprise announced its acquisition of 360IT Partners on October 22, 2024, marking another strategic expansion of the PE-backed platform's East Coast footprint. The Virginia Beach-based MSP joins Dataprise's growing portfolio of managed service providers serving mid-market businesses across the Eastern United States.

360IT Partners has built a solid presence in the Hampton Roads region, delivering comprehensive IT support, cybersecurity services, and technology solutions to local businesses. The company's client base and regional expertise complement Dataprise's existing operations, which span multiple East Coast markets with a focus on delivering enterprise-grade technology services to growing businesses.

Financial terms of the transaction were not disclosed, consistent with many private equity platform acquisitions in the MSP sector. The deal represents Dataprise's continued execution of its buy-and-build strategy under Trinity Hunt Partners' ownership.

Strategic Logic

This acquisition fits squarely within Dataprise's geographic expansion playbook. The Hampton Roads area represents an attractive mid-market business environment that aligns with Dataprise's target client profile. By acquiring 360IT Partners, Dataprise gains immediate market presence and established customer relationships in a region where organic expansion would require significant time and investment.

The strategic fit extends beyond geography. Key factors driving this combination include:

• Market density: Hampton Roads offers a concentrated base of mid-market businesses requiring sophisticated IT services
• Service alignment: Both companies focus on comprehensive managed services and cybersecurity solutions
• Client enhancement: 360IT Partners' customers gain access to Dataprise's broader service portfolio and resources
• Operational leverage: Dataprise can apply its standardized processes and vendor relationships to improve 360IT Partners' margins

The deal also strengthens Dataprise's position as a regional consolidator. Rather than competing for the same clients across fragmented markets, the combined entity can offer more comprehensive coverage and deeper local expertise throughout Virginia and surrounding states.

Valuation Context

While deal terms remain undisclosed, this transaction reflects the continued appetite for quality MSPs in attractive regional markets. The Southeast MSP M&A market has remained active throughout 2024, with strategic buyers and PE platforms competing for well-positioned targets.

Regional MSPs serving mid-market clients typically command valuation multiples ranging from 3-6x EBITDA, depending on factors such as recurring revenue mix, growth trajectory, and market position. Companies with strong cybersecurity capabilities and established client relationships often trade toward the higher end of this range.

The involvement of Trinity Hunt Partners as the backing sponsor suggests Dataprise has access to capital for additional acquisitions. PE-backed platforms generally maintain disciplined valuation approaches while prioritizing targets that offer clear strategic value and integration opportunities. This dynamic has helped sustain reasonable valuation levels even as competition for quality MSP targets intensifies.

What MSP Owners Should Know

1. Regional platforms remain active acquirers: PE-backed consolidators like Dataprise continue executing buy-and-build strategies, creating opportunities for MSPs seeking exits to well-capitalized strategic buyers. These platforms often move quickly on attractive targets and can offer competitive terms.

2. Geographic expansion drives deal logic: MSPs with strong positions in attractive regional markets command premium valuations from buyers seeking to expand their footprint. Owners should understand how their market position and client concentration affect their strategic value to potential acquirers.

3. Service portfolio matters for valuation: The emphasis on 360IT Partners' cybersecurity capabilities highlights how specialized service offerings enhance acquisition attractiveness. MSPs investing in high-value services like security, compliance, and cloud migration position themselves for stronger exit multiples.

4. Integration capabilities influence buyer selection: Dataprise's track record of successfully integrating acquisitions while maintaining client relationships makes it an attractive buyer for MSP owners concerned about post-transaction outcomes. Sellers should evaluate potential buyers' integration experience and cultural fit alongside financial terms.