Summary: MSP Navisite, backed by Madison Dearborn, acquired Velocity Technology Solutions, based in Charlotte, NC.
Details: Velocity is a MSP founded in 2003 and focused on managing and hosting ERP applications on-premise or on private or public cloud infrastructure. Velocity serves ~400 customers with a sweet spot in the mid-tier to enterprise space. In addition to infrastructure hosting, Velocity provides managed services, consulting, migration services, data management, container management and DR services. Velocity does a substantial amount of business on the Oracle side and also some meaningful volume with SAP. Other application platforms supported include PeopleSoft, JD Edwards, Lawson, Infor and Epic. Velocity supports Microsoft, Oracle and SAP applications on AWS and is also an Oracle Cloud partner.
Oracle Cloud: The Oracle competency is not something that Navisite currently has and Velocity gives it support for another cloud platform that is particularly relevant in the ERP space. Navisite has migrated a number of customers running Oracle to AWS and Oracle Cloud is a logical option that is likely to emerge with more frequency. Velocity comes with some customers on Oracle Cloud already.
Proprietary technology: Velocity built an application management and monitoring platform (VCAMP) that it had previously tried to spin out into a software business before returning to focus on being an infrastructure service provider.
Metrics: We spoke with management and they were able to share that this acquisition brings Navisite up to nearly 2k people and adds in the area of 40% to the top-line.
Navisite and SAP: Navisite continues to build its SAP practice and recently acquired Chicago-based SAP consulting firm Dickinson + Associates. Dickinson manages customers on AWS and Azure and recently added support for Google Cloud. It is also helping customers re-platform for SAP S/4HANA.
Angle: During the pandemic, Navisite has closed three acquisitions. The other was the purchase of an AWS shop called Privo. Privo enhanced Navisite’s existing AWS capabilities with its expertise in cost optimization, DevOps and security. All three transactions speak to Navisite’s strategy of acquiring providers and consultancies that are focused in the same areas the core Navisite business is already playing in (thereby enhancing, scaling what it has), but also able to bring new capabilities that widens its portfolio and creates new opportunities. Like Navisite, Velocity does a lot of enterprise application hosting, is supporting public cloud, and targeting the mid-market to lower end of the enterprise market: companies with $300m to $7b in revenue and 500 to 10k employees. The Velocity acquisition also brings a solid base of customers that fits with Navisite’s larger strategy. It is looking to increase wallet share from each customer and a wider range of capabilities should help it create more upside to maximize that opportunity.
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