The Deal
Thrive, one of the most active PE-backed MSP platforms in North America, has completed its acquisition of Worksighted, a Michigan-based managed services provider. The deal was announced in March 2025 and closed shortly after.
This is the latest in a string of add-on acquisitions for Thrive, which has been systematically building national scale under the backing of Berkshire Partners and Court Square Capital Partners.
Strategic Logic
Thrive's acquisition strategy follows a clear geographic expansion playbook. Each add-on deepens their presence in a target region while adding local customer relationships and technical talent that would take years to build organically.
Why Worksighted fits:
- Geographic fill: Michigan represents a market where Thrive had limited direct presence. Worksighted gives them an established local operation with existing client relationships.
- Recurring revenue base: Worksighted's managed services contracts provide the predictable MRR that PE platforms value most highly.
- Operational integration: As a mid-market MSP, Worksighted can leverage Thrive's centralized NOC, SOC, and procurement capabilities to improve margins post-acquisition.
Valuation Context
While deal terms were not disclosed, this transaction fits the pattern of PE platform add-on acquisitions in the $10-25M revenue range.
For MSPs in this size bracket with strong recurring revenue metrics (80%+ MRR as a percentage of total revenue), current market multiples are running in the 8-12x EBITDA range for well-positioned targets. Premium multiples within that range go to MSPs with:
- High client retention rates (95%+)
- Clean financials with normalized owner compensation
- Geographic or vertical specialization that fills a gap in the buyer's portfolio
What MSP Owners Should Know
If you're a Midwest MSP owner watching Thrive's expansion, there are a few takeaways:
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The consolidation wave is real in your region. Thrive is not the only PE platform active in the Midwest. Ntiva, Dataprise, and several others are competing for quality add-on targets.
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Geography still matters. Even in an era of remote everything, PE platforms pay a premium for established local operations with embedded client relationships. Your local presence is a strategic asset.
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Scale creates urgency. As platforms like Thrive get larger in your market, the competitive dynamics shift. Being acquired by a platform that's already in your geography can mean different deal terms than being the first foothold.
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Preparation drives premium. Thrive's targets typically have clean financials, documented processes, and a clear MRR story. If you're thinking about an exit in the next 2-3 years, the time to prepare is now.