Evolve IP, ATSG Announce Merger To Create Major MSP Business

Both companies underline that the combined company will feature over $230mn in revenue and over 1,700 customers

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Evolve IP, ATSG Announce Merger To Create Major MSP Business
Unified CommunicationsLatest News

Published: November 4, 2024

Kieran Devlin

Evolve IP and ATSG have announced a strategic merger to form a prominent major services provider.

ATSG, a global tech provider for cloud, IT-managed services, and cybersecurity, expects the transaction will accelerate its services, bolstering the combined entity’s ability to address customers’ increasingly interconnected and complex tech challenges.

Both businesses expect the combined entity to generate over $230 million in revenue and serve over 950,000 end-users across 1,700 global customers. Most of this revenue will be monthly recurring revenue under long-term contracts.

Jeff Coursen, CEO of Evolve IP, said:

This journey marks a transformative step forward for Evolve IP and all of our customers. This aggregation of our talent, tools, and resources is a testament to our commitment to pioneering the industry and will enable us to offer maximum value for our customers. We are looking forward to leveraging ATSG’s rich platform of intellectual property and suite of services capabilities to deliver an increasingly end-to-end solution for our customers.”

ATSG, which will hold a controlling majority, is supported by RunTide Capital, a private equity firm. Equity financing for the combination of ATSG and Evolve IP was provided by investment funds managed by Morgan Stanley Private Equity Secondaries through a vehicle managed by RunTide Capital.

ATSG plans to integrate solutions from both companies into a more comprehensive and robust managed services portfolio, benefiting mid- and enterprise customers. Evolve-IP and ATSG affirm that the complementary nature of each company’s standalone service offerings will enable the combined business to serve its customers better.

The combined company intends to provide a thorough platform of managed IT services tailored to meet the dynamic needs of businesses in today’s tech landscape.

“Evolve IP offers an innovative, market-leading suite of desktop-as-a-service, cloud-communications, and contact centre solutions,” added Russ Reeder, CEO of ATSG and the go-forward CEO of the combined business.

“Combined with ATSG’s infrastructure-centric managed services, we will strengthen our collective position in the market and provide better outcomes for our combined base of customers. By combining with Evolve IP, not only are we combining our collective expertise, culture, and services, we’re also positioning ATSG to emerge as one of the largest privately-owned managed services platforms with an ability to drive value for all of our stakeholders.”

Cited Highlights of the Merger

By uniting ATSG’s infrastructure-centric managed services with Evolve IP’s desktop-as-a-service and cloud communications-centric managed services, both companies stress the combined entity will be able to offer a comprehensive suite of end-to-end services to its customer base. This expanded capability seeks to enhance service delivery and provide customers with a more integrated and seamless experience.

The combined entity’s key focus will be its customer-centric approach. The new organisation aims to turn customers into brand evangelists by prioritising exceptional service, cutting-edge solutions, unique intellectual property, and consistent, proactive user engagement. This strategy is designed to ensure high levels of customer satisfaction and loyalty.

ATSG says its recognition in the Gartner Magic Quadrant further underscores its commitment to excellence. ATSG emphasises that being named a Leader in the Managed Network Services category and a Challenger in the Desktop-as-a-Service (DaaS) category highlights its ability to deliver innovative solutions across multiple service areas.

The transaction aspires to scale the new organisation significantly, making it one of the largest privately held managed services platforms. It positions it for strong organic and inorganic growth, allowing it to better compete in the market and expand its reach.

Finally, both businesses say the combination will bring together top talent from both companies, creating a leadership team with a shared vision and a proven track record of delivering results.

What Else Has Evolve-IP Been Up To Recently?

In August, Evolve IP and BroadSource extended their partnership to deliver an enhanced system for securing phone card payments.

The collaboration seeks to combine BroadSource’s expertise in delivering a secure and reliable cloud communications platform with Evolve IP’s strengths in solution customisation. Additionally, Evolve IP offers access to its extensive partner network and broad customer base, enhancing the partnership’s reach and impact.

In July, Evolve IP and Tango Networks partnered to launch Anywhere Mobile, a new solution empowering enterprise mobile users.

Anywhere Mobile aims to bring desk phone capabilities directly to personal mobile devices, aligning with Evolve IP’s “work from anywhere” strategy.

Through a partnership with Tango Networks, this service offers Evolve IP EMEA partners enhanced flexibility, supporting a BYOD (bring your own device) approach across various industries. Evolve IP describes this solution as increasing efficiency and convenience by transforming any employee’s personal mobile phone into a fully integrated business communication tool.

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