IT Managed Service Provider (MSP/ISP): Internet Svcs, Telecom, Cloud Services – Sold

This company has been sold; view our managed services providers for sale and all of our technology businesses for sale.

The company was established in the mid 90’s. The company is family-owned and operates out of company-owned premises. Being under the same management for all its existence, this business has thrived in a rapidly changing technological environment. The company has endured stiff competition, changing industry standards and technology, and has gained the experience in technology and customer services to deliver a technological edge of a large business with the wallet of a small business to all clients.

This company delivers reliable telecommunications services for data, voice, and cloud while reducing costs of operation and at the same time offering the benefits of expert management of customer IT assets. The company owns and operates a fiber optic and fixed wireless broadband network. The company has deep reseller and wholesale relationships with large telecommunications companies.

The company offers:

• Connectivity: fiber-based connections, technical support, nationwide connections.
• Phone: Hosted PBX, local and long-distance phone service, VoIP fax lines, UCAAS, Internet service, private WAN services, cloud-based phone systems.
• Cloud/IT: virtual desktops/apps, work from any device/location, custom business solutions, IT maintenance, and support.

The company services 220+ clients; over 2,500 end-users.

Data services offered by the company account for 36% of the revenue, voice services contribute another 36% of the revenue and 28% of the revenue comes from Cloud services which are relevantly new.

The company has key strategic partnerships which make the company even more lucrative

Key Highlights / Competitiveness

• All services are subscription-based on auto-renewal contracts. The company enjoys very high customer retention with 94% of all revenues being recurring.
• The company has a low single customer loss risk, with the largest customer bringing in only 9% of revenue.
• The company hosts its own cloud services and voice services in its own small data center. This makes the cloud services and voice services higher margin than a company that just resells these services. It would be an ideal addition to a managed service company that wishes to enter the facilities-based cloud and voice/telco business.
• Most business comes from direct client referrals.
• The company enjoys profit margins of 59% of sales.
• The cost of goods sold (COGS) is declining dramatically due to various strategic implementations put in place.
• Customer churn is very rare. Most customers are with the company for decades.

Facilities: The owner has a building in TN that serves as the company headquarters. It hosts fiber terminations and a small data center for cloud services. The new owner can lease the facility from the current owner for $2000 per month or can buy the asset for the market value which is about $220,000.

Support & Training: Full Support will be provided

94% Monthly Recurring Revenue at 59% margins.
Growing at 14% per year.

The price includes $267,000 of equipment.

Contact us to help you sell your technology business in Tennessee or any other location.