Buyers & Acquirers

Thrive Acquisition Strategy: PE-Backed MSP Platform Profile

By Gui Carlos, CFA, Principal at Walden M&A··6 min read

Thrive is a PE-backed MSP/MSSP platform headquartered in Foxborough, Massachusetts, backed by Berkshire Partners and Court Square Capital Partners. The company has completed 27 acquisitions since 2016, operates from 32 locations across the US, UK, Canada, Australia, and Asia, and employs approximately 1,600 people globally. As of late 2025, Thrive is approaching $400 million in annual revenue and has publicly stated its goal of becoming the first $1 billion "next generation" MSP within 4-5 years. For MSP founders evaluating acquirers, Thrive represents one of the most active and well-capitalized platforms in the market, with a security-first acquisition thesis and dual PE sponsorship that provides significant dry powder for continued deal-making.

Company Overview

Thrive positions itself as a "next generation" managed services platform, distinguishing its approach from traditional MSP roll-ups through deep integration of cybersecurity across all acquired businesses and significant investment in ServiceNow, automation, and AI capabilities.

  • Headquarters: 25 Forbes Blvd, Foxborough, MA
  • CEO: Rob Stephenson (named 2024 MSP Titan of the Year)
  • Employees: ~1,600 globally
  • Revenue: Approaching $400 million (2025)
  • Locations: 32 across US, UK, Canada, Australia, Asia
  • Founded as platform: 2016

The company serves mid-market, small enterprise, and sophisticated SMB clients, with particular depth in financial services, healthcare, professional services, and government verticals.

Acquisition Strategy

Thrive's acquisition approach has evolved significantly. The platform started as a Northeast-focused MSP consolidator and has expanded to national and international coverage. The dual PE sponsorship from Berkshire Partners and Court Square provides Thrive with both the capital and the strategic patience to pursue capability-driven acquisitions rather than pure revenue aggregation.

Target criteria:

  • Operationally mature MSPs with strong, recurring revenue bases
  • Companies with complementary cybersecurity, compliance, or GRC capabilities
  • Regional MSPs in high-growth markets (Florida, Texas, Midwest)
  • International MSPs that provide geographic or capability expansion
  • Culture fit and customer alignment are core evaluation factors

What makes Thrive different from other platforms:

  • Security is integrated across all acquisitions from day one -- this is not optional
  • ServiceNow platform investment creates operational backbone across the portfolio
  • 95% employee retention rate within 12 months of acquisition signals strong integration practices
  • International presence (UK via ONI in 2021) provides global delivery capability

Deal History

YearTargetTypeRegionNotes
2025WorksightedMSPMidwest (MI)Strategic IT services, Midwest expansion
2025VitalCOREMSPMidwest26th acquisition, Midwest footprint
2025Baroan TechnologiesMSPNortheast (NJ)Tri-state area strengthening
2025AbacodeMSSPSoutheast (FL)Compliance and GRC capabilities
2025Secured Network ServicesMSSPNortheast (NH)Healthcare, government, non-profit focus
2024Safety NetMSPMidwest (MI)Michigan-based IT services
2024DPE SystemsMSPWest (WA)West Coast expansion
2024The Longleaf NetworkMSPSoutheast (NC)Southeast presence
2023InCare TechnologiesMSPSoutheastRegional presence
2022SouthTechMSPSoutheast (FL)Sarasota-based, 6 deals in 2022
2022DSM TechnologyMSPSoutheast (FL)Florida market deepening
20224ITMSPSoutheast (FL)Miami-based
2021ONIMSPUKInternational expansion, Cisco Gold Partner
2021US Resources IncMSPSoutheast (DC)DC market entry
2021Practical Software SolutionsMSPSoutheast (NC)Regional expansion

Note: This is a partial list. Thrive has completed 27 total acquisitions since 2016. Earlier deals include additional Northeast-focused MSPs that formed the initial platform.

What MSP Owners Should Know

  1. Thrive is a security-first buyer. If your MSP does not have meaningful cybersecurity capabilities or a clear path to integrating them, Thrive may not be the right fit. The company evaluates every acquisition through a security lens, and integration includes layering Thrive's MSSP capabilities across acquired client bases. MSPs with existing SOC, SIEM, or compliance practices are particularly attractive.

  2. The dual PE sponsorship changes the capital structure. With Berkshire Partners (Fund XI: $7.8 billion) joining Court Square in January 2025, Thrive has access to significantly more capital than most MSP platforms. This means they can compete on price for quality assets and are less likely to walk away from a deal over valuation. For sellers, this is a positive signal about deal certainty.

  3. The 95% retention rate matters. MSP founders care about what happens to their people post-close. Thrive's track record of retaining 95% of acquired employees within 12 months is among the best in the industry. Ask about integration timelines and role preservation during diligence.

  4. The $1 billion target creates urgency. Thrive has publicly stated its ambition to reach $1 billion in revenue within 4-5 years. At approximately $400 million today, that requires significant continued acquisition activity. Platforms with ambitious targets and fresh capital tend to be motivated buyers.

Valuation Context

Thrive does not publicly disclose acquisition valuations or multiples. Based on comparable PE platform MSP transactions in the current market, quality MSPs with $5-25 million in revenue, strong recurring revenue, and cybersecurity capabilities typically trade in the 6-10x adjusted EBITDA range when selling to well-capitalized platforms like Thrive.

The Court Square initial investment in 2021 and Berkshire Partners entry in 2025 suggest the platform itself was valued well above the sum of its parts -- a common pattern in PE-backed roll-ups where the platform multiple exceeds the acquisition multiples of individual add-ons.

For MSP owners, the key fund timeline consideration is that Court Square's investment dates to 2021 (Fund IV), with Fund V ($3.94 billion) now open. Berkshire's Fund XI ($7.8 billion) closed in October 2024. Both funds are in their early deployment phase, which typically means 3-5 years of active deal-making ahead.

Sources

  1. Thrive - "Driving Innovation and Scale: Thrive Targets $1 Billion Market Position" (December 2025): https://thrivenextgen.com/driving-innovation-and-scale-thrive-targets-1-billion-market-position/
  2. Berkshire Partners - Thrive Investment Announcement: https://berkshirepartners.com/thrive-receives-strategic-investment-from-berkshire-partners-and-court-square-capital-partners/
  3. Tracxn - Acquisitions by Thrive: https://tracxn.com/d/acquisitions/acquisitions-by-thrive/
  4. ChannelE2E - Thrive's Growth as Next-Gen Platform MSP: https://www.channele2e.com/feature/nobody-does-what-we-do-thrives-growth-as-a-next-gen-platform-msp
  5. Court Square Capital Partners - Thrive Portfolio: https://www.courtsquare.com/portfolio/thrive/
  6. Channel Futures - Thrive Buys Michigan MSP Safety Net: https://www.channelfutures.com/mergers-acquisitions/thrive-buys-michigan-msp-safety-net
  7. Thrive - VitalCORE Acquisition Announcement: https://thrivenextgen.com/thrive-expands-midwest-footprint-with-acquisition-of-vitalcore/

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