Niobrara Capital, a U.S.-based private equity firm focused on middle-market B2B technology and technology-enabled services companies, has acquired MSP Corp, a Canadian managed IT services provider specializing in IT infrastructure, cybersecurity and cloud environments for small and midsize businesses. Financial terms were not disclosed.
Founded in 1993, MSP Corp has built a full-service outsourced technology platform serving businesses that need ongoing management of their IT environments.
Its services include managed IT monitoring and support, managed cybersecurity, multi-cloud management, backup and disaster recovery, along with emerging offerings around data compliance and artificial intelligence. Much of the business operates through recurring customer contracts.
Niobrara said the acquisition reflects its broader strategy of investing in middle-market technology businesses that hold strong market positions, generate recurring revenue and benefit from long-term technology trends.
The firm sees MSP Corp as a platform that can continue expanding across a fragmented North American managed services market.
MSP Corp has already built a national presence in Canada and has experience acquiring and integrating other businesses. Niobrara plans to support further expansion within Canada while pursuing new growth opportunities that could extend the platform into the United States.
The managed services market has become increasingly important as smaller and midsize companies rely on outside specialists to operate increasingly complex IT environments.
Companies often need support across cloud infrastructure, cybersecurity, data protection and compliance but may not have the resources to build large internal technology organizations.
MSP Corp’s model allows customers to outsource much of that responsibility through recurring managed services relationships.
Artificial intelligence is also expanding the range of services that managed IT providers can offer. Niobrara believes growing AI adoption will create additional demand as companies look for help implementing new technologies, securing AI-enabled environments and managing increasingly complex data and infrastructure requirements.
The acquisition gives Niobrara a platform with an established Canadian customer base and an operating model that can potentially benefit from additional acquisitions.
The Canadian managed IT market remains fragmented, according to Niobrara, creating opportunities to consolidate smaller providers into larger platforms capable of offering more comprehensive services and broader geographic coverage.
MSP Corp is led by CEO Habib Mlik, who said the company has focused on building a technology and business transformation platform rather than simply providing basic IT support.
The partnership with Niobrara is intended to accelerate that strategy while creating additional growth opportunities for MSP Corp’s employees and customers.
Niobrara’s leadership team brings nearly three decades of experience across technology investing, proprietary deal sourcing and value creation.
The private equity firm focuses primarily on B2B technology and technology-enabled services companies where it believes operational improvements, strategic investment and market consolidation can support growth.
For MSP Corp, the transaction provides additional capital and strategic support as the company seeks to deepen its position in Canada and build a broader North American presence.
The acquisition also gives Niobrara exposure to several expanding technology categories through one platform, including managed cybersecurity, cloud computing, data compliance and AI-related services.
KEY QUOTES:
“MSP has built a scaled national platform with impressive customer retention and a proven acquisition track record – giving it an established foundation to accelerate growth. The Canadian managed IT services market remains fragmented, and AI adoption is creating new demand and expanding the scope of what providers can deliver.”
Otavio Birman, Managing Director at Niobrara Capital
“From the beginning, our vision for MSP Corp has been to build a digital and business transformation powerhouse where technology is more than a productivity tool—it is a catalyst for our clients’ success. I am incredibly proud of what our team has built and, as we look ahead, I am excited to work alongside Niobrara to take MSP Corp to new heights.”
Habib Mlik, Chief Executive Officer of MSP Corp
