Sourcepass Acquires Network Solutions and Technology, Inc., Completes Latest Funding Round of $70MM

New York, NY – March 2, 2022 – Sourcepass, announces it has closed the acquisition of  Network Solutions and Technology, Inc. (NST), a leading information technology service provider, for over 21 years.  The deal was funded through a mix of cash and equity. 

Sourcepass also completed its latest round of funding, with $70MM in capital commitments. The rough includes debt and equity financing from lead growth capital partner Metropolitan Partners Group, notable investors Wedge Venture Partners, and several experienced angel investors. These milestones position Sourcepass to advance its mission and revolutionizing IT services for SMBs across North America. 

Sourcepass delivers an omni-channel, end-to-end approach to IT services, with a focus on digitizing the experience for SMBs. Its model connects SMB with the right technology for their needs at the best value. This gives them access to tools that were out of reach until now. SMBs are the largest business segment in the U.S., with over 30M organizations that need help with their IT. That need is expected to grow into a market of over $100B by 2025 as demand for remote work IT support and integrations continues to rise. 

NST will now serve as the platform company for Sourcepass’ organic and inorganic growth. Sourcepass plans to integrate all future acquisitions into the NST operating model. The acquisition adds NST’s 155 employees and its locations in New York City, NY; Long Island, NY; New Jersey; Connecticut; and Tennessee. Sourcepass will also extend its digital tools, including interactive web portals and mobile apps, to NST’s 400 SMB customers across 38 states and over 20,000 endpoints.

“We could not be more pleased to share that we have closed on the acquisition of  NST and to have fully retained NST’s leadership team as they will play a pivotal role in our plans to advance the industry,” Sourcepass Chairman, Chuck Canton stated. “This achievement and latest round of funding affirms the market opportunity to enhance and modernize current IT service offerings and how they are delivered to SMBs, as well as, the belief in the value and necessity of the Sourcepass mission.”

“Our team at NST looks forward to the future and what we will do together with Sourcepass as now a combined enterprise,” said Matthew Brown, NST CFO and Co-Founder. “Together, utilizing Sourcepass’ model and technology coupled with our industry experts we can truly drive the transformation of IT services to bring innovation to the SMB market and support our clients in enhancing their competitive position.”

The NST acquisition and latest funding round position Sourcepass to: 

• Continue building out its digital ecosystem
• Make accretive acquisitions, with a goal of completing 7 in 2022
• Invest in a go-to-market strategy that makes it easier for SMBs to buy IT services

“Our team was extremely selective with our pool of interested investors. We ultimately chose Metropolitan Partners Group, whose passion matched our own, as our lead growth capital partner. We are energized for the future and the possibilities these new commitments enable for us to drive innovation and be the entrepreneurs revolutionizing the IT services space from the inside-out,” Canton further commented.

“We congratulate Sourcepass and NST for completing this strategic acquisition. Sourcepass’ mission presents a fantastic market opportunity, and we are proud to join them on their journey,” said Richard Lin, Managing Director at Metropolitan Partners Group. “The customer-obsessed mentality Sourcepass embodies, coupled with its fresh, dynamic take on addressing existing gaps in IT solutions that affect SMBs worldwide, position it for robust success. They bring an innovative vision and a commitment to becoming agile operators and entrepreneurs that is very exciting to be a part of.”

About Sourcepass

Sourcepass is digitizing the way small and mid-sized businesses (SMB) access innovative IT solutions by making strategic acquisitions in the IT Managed Services space. Sourcepass is committed to eliminating the challenges that SMBs face worldwide, allowing them to focus on their core business. The Sourcepass culture promotes modernization, diversification, and productivity to deliver world-class IT results and drive growth. Their goal is to help SMBs successfully navigate the digital era and remain competitive against a shifting technology landscape by immediately connecting clients with modern, valuable IT solutions for a seamless IT approach. 

About Network Solutions and Technology, Inc. (NST)

NST is a leading information technology service provider with the most skilled and knowledgeable certified professionals working in the industry. For over 21 years, our forward-thinking approach has ensured that we have the vision to anticipate potential obstacles and challenges before they arise, maximizing efficiency while mitigating costs. NST’s end-to-end approach to providing unparalleled IT support services starts with a dependable IT infrastructure that helps small to mid-sized businesses run a successful business in today’s competitive market, ensuring clients’ network stability, increased network up-time and increased employee productivity. Driven by a commitment to help clients compete in their respective industries, NST’s innovative solutions are tailored to each clients’ specific business environment and company strategy, upgrading the technology that propels their businesses forward. 

About Metropolitan Partners Group

Metropolitan Partners Group is a private credit firm based in New York City that provides collateralized loans to small and mid-sized, non-sponsored businesses. Metropolitan’s funds deliver senior-secured, short-term funding to companies that have quality operations, assets and a strong profit opportunity, but lack efficient access to capital. The firm provides short-term loans of $10 million to $30 million to fundamentally sound companies, with a typical loan term of 12 to 36 months. Since its inception in 2008, Metropolitan has deployed more than $1.5 billion of capital and completed over 125 investments with companies across various business sectors, including financial services, specialty finance, business services, real estate, media & telecom, industrial, and agriculture. To learn more, go to: http://www.metpg.com.

MEDIA CONTACT

Sandra Schwartzman

Vice President of Public Relations

RMR & Associates

(301) 230-0045 x 100

sschwartzman@rmr.com