Merger and acquisition (M&A) activity in the MSP and MSSP spaces has been relatively consistent over the past few years, with companies buying each other to gain strategic advantages. This continued consolidation has led to the rise of platform companies – MSPs and MSSPs that acquire smaller companies and bring them under the same umbrella.

ChannelE2E has an ongoing series exploring this trend. Most of these large platforms are backed by private equity firms and have a dedicated M&A team that handles the logistics of sourcing, evaluating, buying and integrating these companies.

Each platform company tries to differentiate itself in different ways. For example, Brightworks IT prioritizes cultural fit as a core element of its acquisition strategy, while Ntiva’s M&A process focuses on leveraging the company’s broader resources and expertise to grow recently acquired businesses. 20 MSP founder Tim Conkle envisioned a collaborative network of many MSPs, where owners could share profits from one business with another.

Thrive’s Acquisitions Growth

Backed by private equity firm Court Square Capital Partners and founded in 2000, Thrive stands out from the crowd with its focus on safety.

“There is no one today who does what we do, from start to finish,” Thrive President Bill McLaughlin explained to ChannelE2E.

Based in Concord, Massachusetts, Thrive’s comprehensive approach includes a robust MSSP practice, consulting services with virtual CIOs and a significant cloud practice, McLaughlin said. He added that Thrive’s integrated platform, powered by ServiceNow, allows it to offer a unique value proposition, combining traditional help desk services with advanced cybersecurity, cloud solutions and infrastructure assessments.

McLaughlin joined Thrive three years ago. With more than 20 years of experience in the managed services and data center industries, McLaughlin has played a key role in overseeing the company’s growth and strategic direction.

Thrive has experienced significant growth in recent years, expanding its services and geographic reach from a regional focus in the Northeast to a broader national and international presence with deals in Canada and the United Kingdom.

Recent deals include the acquisitions of The Longleaf Network in North Carolina, 4IT in Miami and IT Freedom, based in Austin, Texas.

Thrive’s M&A Strategy

Thrive has adopted an aggressive acquisition strategy as a core component of its growth model. The company focuses on identifying and acquiring MSPs that complement its existing services and align with its long-term goals.

Thrive’s acquisition activity is focused on expanding its service offerings and entering new markets, particularly in regions such as Florida and Texas, where economic growth has been strong.

Thrive’s approach to acquisitions is both strategic and responsive, using its network to identify potential targets. “We have a lot of dry powder to fuel our growth from an M&A perspective,” said McLaughlin, who emphasized the importance of strategic alignment and market expansion in their acquisition choices.

Like many platform MSPs and MSSPs, a key element of Thrive’s acquisition strategy is ensuring that the companies it acquires align with its cultural values ​​and strategic goals. Thrive places a strong emphasis on finding targets that share its vision for a next-generation managed services platform, particularly in areas like cloud security.

The due diligence process involves evaluating the leadership, cultural fit, and technical compatibility of target companies to ensure they align with Thrive’s focus on security and innovation. By maintaining this alignment, Thrive aims to preserve the strengths of the acquired companies while enhancing their overall capabilities, McLaughlin said.

The Role of Cybersecurity in Thrive’s Strategy

Cybersecurity plays a critical role in Thrive’s business model, both a fundamental element of their day-to-day operations and a key consideration during acquisitions. This emphasis on cybersecurity is integrated into every aspect of the company’s strategy, from protecting customer data to ensuring the seamless integration of newly acquired businesses into Thrive’s security framework.

“Security plays a critical role in the decision-making process when evaluating a company for acquisition. Even if a company has its own security, that’s never a bad thing, but most of our acquisitions didn’t have the depth and breadth of security platform that we have,” McLaughlin explained.

Thrive differentiates itself from other platform companies by integrating comprehensive cybersecurity measures into all companies it acquires.

Thrive is integrating cybersecurity into the core of its operations, McLaughlin said, ensuring that each acquired company benefits from the full spectrum of Thrive’s security capabilities. This includes everything from traditional security controls like next-generation firewalls to advanced solutions like Security Orchestration, Automation and Response (SOAR) systems and AI-driven incident response.

“We’re not an aggregator; we’re truly an integrator,” McLaughlin said. “Every acquisition we make, within nine to 12 months, we’re fully integrated into our business. By month 12, they’re all on ServiceNow, running our playbooks, integrated from a sales perspective, delivering service, and backed by our centralized services, particularly around security.”

For McLaughlin, cybersecurity isn’t just a critical operational component; it’s a strategic priority that informs Thrive’s approach to growth and acquisitions. “We built our own SOC, which sits alongside our NOC. We built a SOAR — security orchestration, automation, and remediation — and we built AI around all of that. So we have the ability to remove a lot of the white noise and make sure that we get alerts and that remediation happens much faster,” he explained.

This approach enables Thrive to provide a consistent and integrated security service across all companies in its portfolio, increasing the overall value and stability of its operations.

Long-term vision and future growth

Thrive plans to build on its existing presence in key markets in the United States, including the Northeast, Florida, Texas and beyond. Additionally, Thrive has its sights set on further international expansion, particularly in regions such as Canada, the United Kingdom and Europe.

“We’re going to continue our acquisition strategy now. We’re primarily on the East Coast, as far west as Mississippi and Texas, but we’re going to try to go further west. We’re looking at Denver, Chicago… and we’re going to continue to grow our presence in EMEA,” said McLaughlin, who emphasized Thrive’s strategic focus on growth in both established and emerging markets.

As cybersecurity threats continue to evolve, Thrive recognizes the importance of adapting and updating its security measures. The company focuses on maintaining robust cybersecurity practices through continued investments in technologies such as Security Orchestration, Automation, and Response (SOAR). Additionally, Thrive explores the development of new security solutions to ensure its operations remain effective against emerging threats.

“We continue to make significant investments in security, not just in platform and product, but also in people. We’re bringing in what we believe are the best and brightest people in the industry, from analysts to CISOs, to strengthen our security capabilities,” McLaughlin said. Thrive’s focus on innovation is not just on responding to current threats, but also on anticipating and mitigating future risks.

As Thrive looks to the future, cybersecurity remains a cornerstone of their long-term vision. McLaughlin emphasized the critical role cybersecurity will play in maintaining Thrive’s leadership in the industry.

“Ultimately, you build a good company, you build a better ship, and everything else comes along. Take care of your employees, and they take care of your customers and the company,” he said.