MSPs Come Together In D.C. With eGuard Acquiring NewTeq

EGuard Technology Services said Monday that it had acquired fellow MSP NewTeq Computer Services, thereby expanding its geographic reach and adding 40 new SMB customers.

The move will give Washington D.C.-based eGuard a presence in the fast-growing Frederick, Md., area, which has increasingly become both a commercial center and commuter exurb for Washington, D.C., over the past decade.

"We've always wanted to grow outside of the D.C. market a little bit," Khaled Farhang, eGuard founder and CEO, told CRN.

[Related: EGuard Rolls Out Stand-Alone Digital Media Offering]

The companies, which had worked together as business partners for many years, had discussed an acquisition for nearly six months before the deal closed on Jan. 1, Farhang said. Both companies have been players in the MSP space for many years. NewTeq was established in 1999 and eGuard founded in 2002.

Thanks to eGuard's capabilities, relationships with NewTeq's existing customers now can be expanded beyond managed services into app development and managed search engine optimization services, Farhang said. Existing NewTeq customers also will have access to eGuard's network operations center support team.

The combined company will be able to leverage its additional staff to offer expanded resources and more technical expertise.

Farhang said EGuard had 11 employees prior to the acquisition, while NewTeq had four. NewTeq CEO Lynda Wagner will remain with the combined company as manager at the Frederick location.

"Our companies have shared a similar vision and company culture, which makes this acquisition both a solid fit and strong growth strategy on continuing to serve and expand SMB customer bases from Washington, D.C. to Frederick," Wagner said in a statement.

Existing eGuard customers won't experience any changes because all of NewTeq's capabilities overlap with services eGuard already provides, Farhang said.

Prior to the acquisition, eGuard had 100 clients, most of which were based in and around Washington, D.C., while NewTeq had just under 40 customers in the Frederick area, Farhang said. Neither company has a vertical focus, Farhang said, opting instead to service SMB customers across all segments.

Though the NewTeq deal is eGuard's first acquisition in at least four years, Farhang said his MSP is definitely open to more M&A opportunities.

"We want to grow in the D.C. metro area," he said.

The MSP has been experiencing annual growth rates of 20 percent to 25 percent since 2008, Farhang said.

EGuard offers two products: Total IT Care, which manages the end user's firewalls, routers, desktops and servers; and Total Web Care, which deals with SEO, brand messaging, social media integration and website redesigns.

Total IT Care has been available on the market since 2008, while Total Web Care was spun off as a stand-alone offering in November for companies that need social media help but have virtually no infrastructure management needs.

PUBLISHED JAN. 12, 2015