Evergreen is ramping up its Australian and New Zealand expansion plans, with the US-based holding company expecting to add several more MSPs to its portfolio before the end of the year while positioning AI advisory services as the next major evolution of the managed services market.

Speaking with ARN, Evergreen vice president of M&A Sydney Hockett and A/NZ managing director Zaun Bhana outlined the company’s long-term acquisition strategy, investment priorities and why they believe the future of managed services will be defined less by technology operations and more by business advisory expertise.

Founded as a permanent holding company, Evergreen has built its global portfolio around a decentralised acquisition model. Unlike many buyers that acquire, integrate and later sell businesses, Evergreen’s strategy centres on owning companies indefinitely while preserving their brands, leadership teams and cultures.

“We’re never selling our businesses,” Hockett said.

The company now counts around 140 MSPs globally within its portfolio, including 20 across Australia and New Zealand, a figure that is expected to rise to 23 in the near term. Recently Evergreen added Perth-based Office Solutions IT (OSIT), marking its largest deal in the Australia and New Zealand (A/NZ) market to date.

“Our mission is to be the best home for businesses and their leaders,” Hockett said. “We do that through decentralisation and letting local businesses operate autonomously.”

That approach has become increasingly relevant as competition intensifies across the mid-market MSP acquisition landscape, where buyers including Evergreen, First Focus and Virtual IT Group continue to pursue growth through M&A.

What Evergreen looks for

Despite fierce competition for quality MSPs, Hockett said Evergreen remains disciplined in its acquisition criteria.

The company typically targets MSPs generating more than $5 million in annual revenue, at least $1 million EBITDA and deriving more than half of their revenue from recurring managed services. However, financial performance alone is rarely enough.

“We want to partner with really well-run, mature businesses,” Hockett said. “We’re not in the business of turnaround situations because we’re leaving these businesses alone. We want stable companies that have a clear growth path. Key indicators include strong customer retention, diversified client bases, healthy growth engines and leadership teams that are not overly dependent on a founder wearing multiple operational hats.  Culture also plays a decisive role. “Because we’re keeping businesses independent, culture becomes incredibly important,” Hockett said. “We want businesses that genuinely care about their employees and customers.”

Deal breakers commonly emerge during due diligence through customer churn events, accounting issues or misalignment between seller expectations and market realities.

According to Bhana, many MSP owners still benchmark themselves against software companies rather than managed services businesses.

“We still see people measuring the value of their business against software multiples, which is simply not the same thing,” he said.

One recurring message was the need for MSP owners to engage with potential buyers long before they intend to sell.

Hockett said many owners ignore acquisition approaches until they are ready to exit, potentially missing years of strategic guidance.

“If you have those conversations early, you’re not under pressure to sell,” she said. “You can understand where your business is today, what buyers value and what would need to be true to achieve the outcome you’re targeting. Bhana added that owners frequently invest significant time and capital into initiatives they believe will improve valuation, only to discover those investments have little impact on buyer interest.

AI reshaping MSP strategies

While cybersecurity remains an important capability, both executives said that some MSPs risk overinvesting in specialised offerings that are increasingly being commoditised through vendors.

Bhana pointed specifically to security operations capabilities, suggesting many MSPs can generate stronger returns through strategic partnerships than by building costly in-house security operations centres.

Both believe AI and automation will drive the next major shift in managed services.

According to Hockett, the industry is heading toward a split between highly commoditised providers focused on reactive support services and premium consultative firms helping customers transform their businesses.

“You’ll have MSPs that are essentially automated help desks, and then you’ll have providers that are genuine trusted advisors,” she said. “Those advisors will help clients understand how technology, automation and AI can improve workflows, productivity and business outcomes.”

The transition will require many MSPs to expand beyond traditional technical expertise and develop deeper business consulting capabilities.

Historically, many MSP founders built their careers around infrastructure, maintenance and support. Future success, Bhana said, will depend on understanding customer workflows, business processes and industry-specific challenges.

“We’re moving from fixing technology to helping customers improve how their businesses operate,” he said.

Despite growing excitement around AI, the market has not yet settled on a winning formula.

“We don’t see anyone with all the answers yet,” Bhana said.

However, Evergreen believes its global portfolio provides a significant advantage. With more than 100 MSPs operating across multiple regions, the company can share experiments, lessons and best practices between businesses as the AI opportunity evolves.

Evergreen already runs peer groups, leadership programs and specialist training around disciplines including AI, service delivery and management.

“If an MSP in Sydney is solving a problem and an MSP in New York has already tackled it, we can connect those people together,” Bhana said.

Australian and New Zealand MSPs, he added, consistently perform strongly on the global stage.

“Australian MSPs punch above their weight,” he said. “The quality of businesses here is exceptionally high.”

More deals to come

Looking ahead, Evergreen expects acquisition activity to remain strong.

The company has multiple transactions currently progressing and is targeting further additions to its A/NZ portfolio before year end.

“We want to keep building,” Hockett said. “We think we’re a really good home for businesses and we’re going to continue doing more of the same, but at a bigger scale.”

For Evergreen, the long-term opportunity extends beyond simply acquiring MSPs. The broader goal is to help providers navigate what could be the industry’s biggest transition yet, as AI transforms customer expectations and elevates the role of trusted technology advisors.

“The MSP market has adapted through every major shift, whether it was internet, cloud or cybersecurity,” Bhana said. “AI will be no different. The successful MSPs will evolve, and they’ll continue to create value for customers in new ways.”