IT MSP with Strong Cloud Partnerships and High-Growth Recurring Revenue

Price: $1,460,000
Annual Revenue: $2,312,400 Net Cash Flow: $362,538
Technology Bengaluru, India, Asia
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An opportunity to acquire a leading cloud services and enterprise IT solutions provider, founded over a decade ago. The company specializes in cloud migration, managed IT support, cybersecurity, and ongoing cloud infrastructure management for small and medium-sized businesses. With a strong foundation in ISO-certified processes (9001, 27001, 20000-1) and strategic partnerships with Microsoft, Google Workspace, and AWS, it delivers reliable, scalable, and secure IT operations.

The company serves a loyal base of 500+ enterprise clients under multi-year contracts, ensuring predictable and growing recurring revenue. Clients span IT services, healthcare, BFSI, manufacturing, and professional services, primarily in India, with a growing international presence.

New business is driven primarily by client referrals, partner networks, and strong account expansion, supported by a lean and efficient acquisition model.

Key Strengths & Differentiators:

  • Rapid Growth: Achieved +39.5% revenue growth from FY2024 to FY2025, with Microsoft and AWS segments leading expansion at +75% and +57% growth, respectively. The company maintained strong +18.5% trailing 12-month growth through September 2025, demonstrating consistent upward momentum.
  • Exceptional Retention: 118% Net Revenue Retention, providing inflation resilience.
  • High Margins: Low direct cost per user seat enables attractive gross margins, especially for US-based customers.
  • Recurring Revenue Model: Majority of revenue from managed service contracts with high renewal rates.
  • Customer Centric & Scalable Delivery: Growth is fueled by relationships and referrals, guided directly by founders and partners. Onboarding is managed through ISO-compliant processes, while retention is secured via SLA-backed delivery, proactive monitoring, and ongoing optimization, driving strong client loyalty and consistent recurring revenue. Centralized, automated operations using offshore delivery models ensure consistent quality and scalability.
  • Strong Partnerships: Microsoft Solutions Partner, Google Workspace Premium Partner, and AWS Partner.

Growth Opportunities:

  • Expansion into the US and other international markets, leveraging cost advantage.
  • Introduction of a sales team and a formal go-to-market strategy to accelerate growth.
  • Scaling existing managed service offerings into new verticals.
  • Further automation and productization of service lines.

Team:

Experienced founding team with deep industry expertise, supported by a skilled remote workforce including cloud architects, cybersecurity specialists, software engineers, and support staff. The revised leadership compensation is market-aligned and sustainable post-acquisition.

Financial Highlights:

  • High and improving profitability due to recent sustainable expense optimizations ($158,800 annualized savings).
  • Recurring revenue base with low client concentration.

Reason for Selling:

The owners are seeking a strategic buyer capable of scaling the business into new markets and verticals. They are committed to ensuring a smooth transition and ongoing support to set the new owner up for success.

India-MSP
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