‘There’s no such thing as a perfect fit. But merging with like-minded MSPs allows us to build something bigger, together,’ says ITPartners founder and CEO Kevin Damghani.
With a fresh $30 million funding round, ITPartners is looking to dive further into the M&A space, giving MSPs differentiated opportunities to join a larger company.
“This funding gives us the ability to grow on our terms and grow faster,” said ITPartners founder and CEO Kevin Damghani. “Positively impacting people is at the heart of what we do, and this lets us scale that mission in a much more powerful way.”
M&A was always in the blueprint, Damghani told CRN, but the Grand Rapids, Mich.-based MSP, which is honored as a member of the Pioneer 250 on CRN’s Managed Service Provider 500 list, waited until it could validate the model.
“There’s no such thing as a perfect fit,” he said. “But merging with like-minded MSPs allows us to build something bigger, together.”
[Related: M&A Expert: ‘Ongoing Healthy Appetite’ For IT Services Deals In 2025]
The June funding, which was secured by private investment firm Metropolitan Partners Group, sets the stage for an M&A road map targeting small to midsize MSPs across North America. The company has closed three MSP acquisitions in the last two years. Now with capital in hand, ITPartners plans to complete three more acquisitions this year, with a target of five to six annually for the next three years. By 2029, Damghani plans to have a portfolio of 20 MSPs.
“We’re currently in talks with about 45 MSPs,” he said. “Of those, 15 are actively exploring a sale or merger.”
ITPartners is not backed by traditional private equity, allowing Damghani to retain full operational control. “This is a different model, similar in ambition but very different in structure,” he said.
The even bigger goal, however, is to invest $1 million per year in global community impact. “We want to make a difference outside of IT,” he said. “That’s the real driver.”
The company recently took 11 team members to Uganda and the Dominican Republic to support local entrepreneurship and community development. One initiative included purchasing 300 hand-sewn bags from Ugandan women to bring back and distribute at industry events.
“We want to use our platform to tell bigger stories and to give back meaningfully,” Damghani said.
Going forward with its M&A road map, ITPartners is interested MSPs and MSSPs in the $1 million to $5 million top-line revenue range with at least 60 percent recurring revenue, located in the U.S. or Canada. Acquired owners have options: Some choose a full exit or roll equity into the larger entity, joining ITPartners’ long-term vision and team.
Cultural alignment is also a major factor.
“We want to do business with people we’d actually want to spend time with,” Damghani said. “We’re a high-growth company and our core values are simple: do great work, think big and make it fun. That’s our culture.”
