The Deal
Evergreen Services Group acquired The Longleaf Network in July 2024, marking a significant milestone as the platform's 100th MSP acquisition. The Alpine Investors-backed consolidator has built one of the most aggressive acquisition programs in the MSP sector, reaching $1 billion in revenue through its buy-and-build strategy.
The Longleaf Network, based in North Carolina, represents Evergreen's continued expansion across the Southeast region. Deal terms were not disclosed, consistent with Evergreen's typical approach to acquisition announcements. This transaction demonstrates the platform's ability to maintain deal velocity even as it scales, completing its 100th acquisition while simultaneously crossing the billion-dollar revenue threshold.
Evergreen's acquisition pace has accelerated significantly under Alpine's ownership, with the platform completing dozens of transactions annually. The Longleaf Network acquisition reinforces the buyer's focus on regional MSPs that can benefit from the platform's operational infrastructure and vendor relationships.
Strategic Logic
The Longleaf Network acquisition aligns with Evergreen's geographic expansion strategy in the Southeast, a region that continues to show strong demand for managed IT services. North Carolina's growing technology sector and business-friendly environment make it an attractive market for MSP consolidation plays.
For Evergreen, this deal provides several strategic benefits:
- Geographic density: Adding another Southeast location strengthens the platform's regional presence and creates opportunities for operational synergies
- Scale advantages: The 100th acquisition milestone demonstrates Evergreen's proven integration capabilities and systematic approach to MSP roll-ups
- Market positioning: Reaching $1 billion in revenue establishes Evergreen as one of the largest MSP platforms globally, enhancing vendor negotiations and enterprise client opportunities
The acquisition also reflects Evergreen's disciplined approach to target selection. The platform has consistently focused on profitable MSPs with established client bases rather than pursuing distressed situations or turnaround opportunities. This strategy has enabled rapid integration and revenue growth across the portfolio.
Valuation Context
While specific deal terms remain undisclosed, the transaction occurs during a period of sustained MSP valuation strength. Southeast regional MSPs typically command EBITDA multiples in the 4-8x range, with premium valuations reserved for businesses showing consistent growth and recurring revenue profiles.
Evergreen's ability to complete 100 acquisitions suggests the platform has developed efficient valuation and due diligence processes. The buyer's scale likely provides competitive advantages in auction processes, including faster closing timelines and reduced execution risk for sellers. Large platforms can often justify higher valuations through demonstrated synergy realization and integration track records.
The timing of this acquisition, coinciding with Evergreen's $1 billion revenue milestone, indicates strong capital availability for continued expansion. Alpine Investors' backing provides the platform with significant dry powder for additional transactions, potentially supporting premium valuations for strategic targets. This financial strength becomes particularly valuable as competition for quality MSP assets intensifies across all regions.
What MSP Owners Should Know
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Platform scale creates competitive advantages: Evergreen's 100-deal track record demonstrates how large platforms can streamline acquisition processes and reduce seller risk. MSP owners considering exits should evaluate buyers' integration capabilities and historical performance, not just offered valuations.
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Regional consolidation continues accelerating: The Southeast MSP market remains highly fragmented, creating ongoing opportunities for both strategic and financial buyers. Owners in growing markets like North Carolina should expect continued buyer interest and competitive auction processes.
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Operational readiness drives valuations: Evergreen's systematic approach to acquisitions suggests they prioritize MSPs with clean financials and scalable operations. Owners should focus on professionalizing their businesses well before considering exit processes to maximize valuation potential.
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PE-backed platforms have extended investment horizons: Alpine's continued support for Evergreen's acquisition program indicates patient capital availability for MSP consolidation. This suggests sustained buyer demand and stable valuation multiples for quality targets across multiple market cycles.