Evergreen acquires SAP Partner Third Wave Business Systems. MSP investor and buyer makes first move into ERP for SMB market.
This is technology M&A deal number 667 that ChannelE2E has covered so far in 2021.
- See all technology M&A deals for 2021 and 2020 listed here.
- See all SAP partner M&A deals listed here.
This is Evergreen’s first entry into the SAP ecosystem. Indeed, Evergreen typically acquires or invests in MSPs that offer IT support in the SMB sector. I
In contrast, Third Wave is the longest-standing SAP Business One ERP Partner in North America and an SAP Gold Partner. The company works with small and midsized businesses to implement and customize SAP Business One alongside a suite of proprietary software solutions. Third Wave will continue to operate independently under its existing leadership team — led by founder and CEO Korey Lind, as well as Byron Thompson who joined as president.
Evergreen Acquires Third Wave: Executive Insight
Jeff Totten, CEO, Evergreen, commented:
“We are excited to continue our expansion into the managed application space with the acquisition of Third Wave. From our first interaction with Korey, it was clear that her team has built a best-in-class SAP Business One Partner and solution provider. The addition of SAP Business One capabilities enables us to build out our business in the application management space and provide additional services to our existing customers.”
Korey Lind, CEO, Third Wave, said:
“The key to Third Wave’s success has always been our people. Evergreen stood out to me as a partner based on their people-first approach to business and a shared belief that investing in our team is the best way to deliver excellent service to our customers. Evergreen’s support will enable us to recruit and retain the best employees while enhancing of our services and our customers’ success.”
Byron Thompson, president, Third Wave, added:
“Third Wave provides a critical service by helping clients leverage key information across all of their business processes and systems. Supporting client businesses has a multiplier effect on both their employees and their end-customers and it is special to see the positive impact the team at Third Wave can deliver. I am excited and honored to partner with Korey and the team at Third Wave to build upon the company’s legacy.”
Ramsey Sahyoun, head of M&A, Evergreen, said:
“As we have continued to scale our MSP business, we saw an opportunity with application-focused service providers that help customers get the most out of their software systems. We’re excited to support Third Wave in growing their business alongside our MSPs and we hope to find more software partners to add to the Evergreen family in the future.”
Evergreen’s Acquisition and Investment History
Third Wave follows Evergreen’s acquisition of 32 managed IT providers since 2018. Evergreen, backed by private equity firm Alpine Investors, continues to actively invest in IT service providers throughout North America. Evergreen now owns multiple “platform” MSPs — which are regional (or national) IT service providers that are large enough to absorb tuck-in MSP, MSSP and IT consulting acquisitions.
MidCap Advisors, a boutique M&A investment bank, acted as the exclusive financial advisor to Third Wave.
Meanwhile, M&A activity among SAP partners remains steady. Key buyers have included such global systems integrators, consulting giants and MSPs such as Accenture, Capgemini, Deloitte, Dimension Data, HCL, IBM and NTT Communications, among many others.