Managed Service Provider Week in Review: Buyouts & Rumors

Managed Service Provider Week in Review: Buyouts & Rumors

By Laura Stotler

There was definitely some moving and shaking in the managed services space this week with mergers and acquisitions topping the headlines. And in addition to the prominent deals being announced, a couple of potentially huge buyouts were rumored. If those deals reach fruition they could have an enormous impact on the cloud and managed services space at large.

Two of the big rumors would create a major disruption in the cloud IaaS space. CenturyLink is reportedly interested in purchasing cloud vendor Rackspace, which could make them a formidable player in the infrastructure market. With toeholds in the telecom, data center hosting and cloud platform markets, Rackspace has the potential to elevate CenturyLink  as a leading infrastructure player. The rumor was followed by yesterday’s report that EMC may be looking to sell its stake in virtualization giant VMware. And that IBM and HP have an interest in purchasing the company, which would elevate their respective positions within the cloud IaaS space.

In real acquisition news this week, LogMeIn acquired Meldium, a startup company specializing in single sign-on (SSO) capabilities. The company also offers password and identity management for cloud apps, which will be a valuable enhancement for LogMeIn and a way for the company to support the BYOD trend. The deal was finalized for $15 million and Meldium’s employees will remain based in San Francisco.

On the merger front, MSP MegaPath will sell its wholesale business and national colocation aggregation network to private equity firm Pivotal Group. Pivotal plans to merge the assets with Global Capacity, a wholly owned company offering connectivity as a service. The merger will give Global Capacity more than 400 new customers while MegaPath will use the sale proceeds to build out its managed and cloud services. MegaPath will focus exclusively on voice, MPLS, security networks and managed and cloud services.

In other interesting news, a new report from CloudMeriTalk found that despite all the advances and activity in the space, federal IT workers are still cautious when it comes to migrating IT services to the cloud. The report found that 89 percent of federal IT professionals are apprehensive because of the risks the cloud poses. They voiced their fears despite federal plans to double agency cloud use since the Federal Cloud Computing Strategy mandate was made in 2011. 



Get stories like this delivered straight to your inbox. [Free eNews Subscription]

MSPToday Contributing Editor

SHARE THIS ARTICLE
Related Articles

Real Estate Forecast 2025: Emerging Developments and Market Shifts

By: Contributing Writer    7/1/2025

Buying or selling property can be challenging. Rising mortgage rates and fluctuating home prices leave many uncertain about their next move. Business …

Read More

Protecting Business Assets with Smarter Security Frameworks

By: Contributing Writer    7/1/2025

Protecting your business is more challenging than ever. Cyber threats are increasing every day. Hackers target small and large businesses alike, searc…

Read More

Reimagining Public Transportation in the Era of Smart Mobility

By: Contributing Writer    7/1/2025

Public transportation can be frustrating. Buses stuck in traffic, late trains, and hard-to-navigate systems often leave people stressed or stranded. M…

Read More

SonicWall Powers Secure Access for Missouri MSP, Improving Cybersecurity and Network Access for Clients

By: Erik Linask    6/27/2025

With SonicWall, Stronghold Data delivers a modern, secure remote access solution that ensures access to networks and resources and improves cybersecur…

Read More

Guardz Unleashes AI-Driven ITDR to Combat Escalating Identity-Based Threats

By: Erik Linask    6/26/2025

The launch of Identity Threat Detection and Response (ITDR) gives MSPs the tools to defend SMBs against increasingly sophisticated attacks targeting u…

Read More