Sourcepass has acquired Network Solutions and Technology, Inc. (NST), an information technology service provider, for over 21 years. The transaction was funded through a combination of cash and equity. With commitments of $70MM in capital, Sourcepass also announces the completion of its latest round of funding.
Through Sourcepass’ newly established relationships with lead growth capital partner, Metropolitan Partners Group; several experienced angel investors; and notable investor, Wedge Venture Partners, the latest round of funding is a makeup of debt and equity financing. These accomplishments have positioned Sourcepass to fuel and advance its mission to revolutionize the IT services space and drive progress for SMB technology footprint across North America.
Sourcepass enhances overall IT services and delivers an omni-channel, end-to-end approach with a true focus on digitizing the IT services experience for SMBs when being connected with the right technology for their needs at the best value to unlock new productivity and outcomes.
This model gives SMBs access to tools that have been unavailable to them until now. As the largest business segment in the U.S., SMBs total over 30M organizations who need help with their IT approach and solutions. These needs are expected to continue to increase to an addressable market of over $100B by 2025 as demand for remote work IT support and integrations to serve user and customer needs continue to rise.
Moving forward, NST will serve as the platform company for Sourcepass’ organic and inorganic growth, with plans for all future acquisitions to be integrated into the NST operating model. Sourcepass’ footprint has expanded with the addition of NST’s 155 employees and its locations in New York City, NY; Long Island, NY; New Jersey; Connecticut; and Tennessee. Sourcepass will be extending its digital capabilities via interactive web portals and mobile applications to NST’s 400 SMB customers, across 38 states and over 20,000 endpoints.
“We could not be more pleased to share that we have closed on the acquisition of NST and to have fully retained NST’s leadership team as they will play a pivotal role in our plans to advance the industry,” Sourcepass Chairman, Chuck Canton stated. “This achievement and latest round of funding affirms the market opportunity to enhance and modernize current IT service offerings and how they are delivered to SMBs, as well as, the belief in the value and necessity of the Sourcepass mission.”
“Our team at NST looks forward to the future and what we will do together with Sourcepass as now a combined enterprise,” said Matthew Brown, NST CFO and Co-Founder. “Together, utilizing Sourcepass’ model and technology coupled with our industry experts we can truly drive the transformation of IT services to bring innovation to the SMB market and support our clients in enhancing their competitive position.”
The NST acquisition and latest funding round, positions Sourcepass to continue to buildout its digital ecosystem; make accretive acquisitions, targeting the completion of 7 acquisitions in 2022; and invest in a Go-to-Market strategy that makes it easier for SMBs to procure IT services overall.
“Our team was extremely selective with our pool of interested investors. We ultimately chose Metropolitan Partners Group, whose passion matched our own, as our lead growth capital partner. We are energized for the future and the possibilities these new commitments enable for us to drive innovation and be the entrepreneurs revolutionizing the IT services space from the inside-out,” Canton further commented.
“We congratulate Sourcepass and NST for completing this strategic acquisition. Sourcepass’ mission presents a fantastic market opportunity, and we are proud to join them on their journey,” said Richard Lin, Managing Director at Metropolitan Partners Group. “The customer-obsessed mentality Sourcepass embodies, coupled with its fresh, dynamic take on addressing existing gaps in IT solutions that affect SMBs worldwide, position it for robust success. They bring an innovative vision and a commitment to becoming agile operators and entrepreneurs that is very exciting to be a part of.”
