MSP raises $ 100 million; Further acquisitions and IPO

By on August 22, 2021 0

Taeyub Kim, Founding Partner, Affirma Capital

One of Asia’s largest Managed IT Service (MSP) providers and Microsoft Azure key partners announced $ 100 million in private equity funding; plans to pursue international acquisitions; and will strive to launch an initial public offering (IPO) in 2023.

The details: Private equity firm Affirma Capital is investing $ 100 million in Metanet T Platform (MTP), a cloud-centric MSP and 2020 Microsoft Partner of the Year for Korea. Armed with a war chest, MTP is exploring merger and acquisition strategies for overseas expansion, according to Taeyub Kim, co-founder and head of Korea at Affirma Korea.

Affirma Capital’s investment marks the first time a private equity firm has invested directly in a Korea-based cloud MSP, according to the companies.

MTP parent company, managed IT services and partners

Metanet Group, the parent company of MTP, claims to be the largest digital business platform company in Korea. The company – which has 10,000 employees in 12 subsidiaries – provides consulting, digital, technology and operations services to clients.

The MTP business employs 1,700 IT professionals, including middleware, database, application and cloud engineers. This expertise extends to public, private, hybrid and multi-cloud services, the company explains.

Major partners in the MTP technology industry include companies such as:

  • Platform providers such as Microsoft (365 and Azure), Red Hat (OpenStack & OpenShift); and IBM (private cloud, servers and storage).
  • Security companies such as Cisco Systems, FireEye, Fortinet, IBM Security, RSA and Thales.
  • Backup, disaster recovery (BDR) and data protection companies like Veeam, Veritas and Cider.
  • Infrastructure management companies such as Quest and DataDog.

MSP expansion plan: investments, partnerships and acquisitions in the cloud

MTP’s expansion plans include $ 174 million in cloud investments over the next few years, according to the company, to address:

  1. Technological advancement in PaaS (platform as a service) and SaaS (software as a service).
  2. Expansion of overseas business, although specific target countries and regions were not mentioned in the funding announcement.

Additionally, MTP hopes to “generate synergies” with several companies in Affirma Capital’s portfolio, Kim said, including:

  • Prodapt Solutions, a global IT solutions company in finance / communications located in India; and
  • MoMo, the largest digital payment company in Vietnam.

Affirma Capital, which currently manages over $ 3.5 billion in assets, was formed by former private equity executives from Standard Chartered.

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