Evergreen Exec On M&A Spree: ‘Our Biggest Growth Year Ever’

‘Our model is keeping their people in place and providing them with the resources they need to thrive,’ says Craig Fulton, advisor for brand, M&A and community at Evergreen Services Group. ‘We’re here to build something sustainable and long-lasting. We’re not here for the quick flip; we’re committed to helping our MSPs thrive for the long term.’

Evergreen Services Group is ending 2024 with 25 acquisitions after an M&A spree this month that included one Australian company and three U.K.-based MSPs.

The acquisitions of the U.K.-based IT services providers, ITBuilder, Certum and CIS Ltd., mark a significant step in Evergreen's ongoing expansion in the U.K. market, following its entry last year with the acquisitions of The Final Step and Digital Origin.

Earlier in December, Evergreen acquired CT Group, Evergreen’s eighth in Australia as it continues momentum in that region.

“This year has been our biggest growth year ever,” Craig Fulton, advisor for brand, M&A and community at San Francisco-based holding company Evergreen Services Group, told CRN. “We’ve acquired over 20 MSPs globally, with about a dozen of those deals closing in just the last few months. Acquiring MSPs tends to happen in bursts, often at the end of the fiscal year when business owners are looking to close deals before the tax year ends. Many of these acquisitions were years in the making, relationships we’ve built up over time with companies that have been aligned with our vision.”

The newly acquired companies will join Evergreen’s growing portfolio under the Lyra Technology Group umbrella, operating independently while benefiting from Evergreen’s resources and expertise.

About 150 employees across all four acquisitions are joining the Evergreen team. Terms of the deals were not disclosed.

Evergreen’s approach to MSP acquisitions is about much more than just adding companies to its portfolio, Fulton said. It’s about building a global community, empowering MSPs to retain their independence while gaining the benefits of collective resources and ultimately ensuring that businesses can thrive for generations to come.

“Our model is keeping their people in place and providing them with the resources they need to thrive,” Fulton said. “We’re here to build something sustainable and long-lasting. We’re not here for the quick flip; we’re committed to helping our MSPs thrive for the long term. This isn’t just about financial gain; it’s about creating something that lasts.”

CRN spoke to Fulton about Evergreen’s strategy behind its expansion into new markets, its 2025 road map and how the company is rapidly evolving into a major player on the global stage.

Evergreen has made significant moves recently, acquiring multiple MSPs across the U.K., Australia and the U.S. What’s the idea behind these acquisitions and the market dynamics at play?

This has been an incredibly exciting quarter for us. In fact, this year has been our biggest growth year ever. We’ve acquired over 20 MSPs globally, with about a dozen of those deals closing in just the last few months. Acquiring MSPs tends to happen in bursts, often at the end of the fiscal year when business owners are looking to close deals before the tax year ends. Many of these acquisitions were years in the making, relationships we’ve built up over time with companies that have been aligned with our vision.

As for the U.K. and Australia/New Zealand, those markets were a bit underserved in terms of acquisition activity, which has created a fantastic opportunity for Evergreen. Unlike North America, where the market is extremely competitive with multiple acquirers, the U.K. and Australia/New Zealand had a real gap in terms of options for MSPs. When we entered those markets, we became the first big player with an offer to preserve the legacy of local businesses and offer an alternative to being absorbed into larger conglomerates.

What attracted you to the three MSPs you just acquired in the U.K.?

We look for managed service providers that are highly focused on recurring revenue, companies that offer pure-play managed services. The three companies we acquired were particularly attractive because they were mature businesses with strong customer retention rates, consistent growth and a solid recurring revenue model. These types of companies are rare, so when we find them, we’re excited to pursue them. In short, they fit perfectly with our long-term growth strategy.

How does Evergreen approach acquisitions in new markets like the U.K., and what role does market research play?

We don’t rush into markets without extensive research. Before we made our first move in the U.K., we conducted years of market analysis, understanding the size of the market, the common valuations for MSPs and the overall potential for growth. One thing we’ve identified in the U.K. is that there’s still significant room for growth in advanced cybersecurity services. The U.K. market is not as far along as North America when it comes to technology adoption, and there’s a huge opportunity for us to bring in new security offerings and build long-term relationships with clients. We’ve also seen that U.K. businesses are increasingly adopting the managed services model, which was once slow to catch on there. We’re in a great position to capitalize on that momentum.

With Evergreen’s decentralized structure, how do you ensure that acquired companies retain their autonomy while benefiting from Evergreen’s resources?

That’s a key part of our strategy. We operate with a very light integration process. Each MSP we acquire retains its brand, its leadership and its existing systems. We don’t come in and tell them how to run their business. Instead, we empower them by offering the collective knowledge of our global network through Lyra Technology Group. Lyra is responsible for helping our MSPs improve in areas like vendor contracts, pricing strategies and talent acquisition. One of the big advantages of being part of a larger organization is access to resources that smaller MSPs often struggle with, like attracting top-tier sales talent.

What is Evergreen’s biggest opportunity in the U.K. MSP market moving forward?

The biggest opportunity for us in the U.K. is still around the M&A space. The market is not as competitive as North America, and there are still many MSPs that are looking for the right next step in their journey. Many of these small-business owners don’t want to be absorbed into a big corporation, they want their legacy to continue. We offer them a unique solution where they can sell their business but still see it grow under the Evergreen umbrella, preserving their leadership team, their brand and their customers.

How does Evergreen differentiate itself from other M&A players in the MSP space?

The biggest difference is that we focus on long-term value, not just short-term gains. Most acquirers in the MSP space work on a shorter time horizon because they have investors pushing for quick returns. Evergreen operates more like Berkshire Hathaway—when we acquire a company, we’re looking to hold it forever, not flip it. We’re committed to preserving the integrity of these businesses while providing them with the tools and resources they need to grow sustainably.

What additional services or capabilities do you see Evergreen adding to its portfolio in the near future?

We’re continuing to expand our capabilities in cybersecurity, as that remains a crucial focus for us. The regulatory landscape is evolving quickly, and we want to make sure our MSPs are ahead of the curve when it comes to compliance and customer protection. We also see a major opportunity in enhancing the customer experience. MSPs today need to go beyond just delivering technical support; they need to help their clients achieve their business goals through technology. We want to help our MSPs deliver that level of value to their clients, whether that’s helping a construction company build more efficiently or a health-care provider streamline operations. Additionally, we’re closely monitoring the rise of AI and its impact on service delivery as well as back-office functions. We’re already working on how we can leverage AI to improve both operational efficiency and the customer experience.

Looking ahead to 2025, what are Evergreen’s goals in terms of acquisitions and expansion?

We’re definitely planning to double down on our efforts in 2025. We want to close twice as many deals as we did in 2024 and continue to expand in the U.K. We’re also exploring new markets like Ireland and ramping up our efforts in North America. We’re building a dedicated team to focus on helping MSPs in those markets not just with M&A, but with strategies that will help them build lasting, profitable businesses. Ultimately, our goal is to be the permanent home for the best MSPs out there, wherever they are in the world.