Sourcepass Acquires Network Solutions and Technology, Inc., Completes Latest Funding Round of $70MM
Mar 08, 2022 Sourcepass News Room Press Release | News 4 min read
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 transaction was funded through a combination of cash and equity. With commitments of $70MM in capital, Sourcepass also announces the completion of its latest round of funding. Through Sourcepass’ newly established relationships with lead growth capital partner, Metropolitan Partners Group; several experienced angel investors; and notable investor, Wedge Venture Partners, the latest round of funding is a makeup of debt and equity financing. These accomplishments have positioned Sourcepass to fuel and advance its mission to revolutionize the IT services space and drive progress for SMB technology footprint across North America.
Sourcepass enhances overall IT services and delivers an omni-channel, end-to-end approach with a true focus on digitizing the IT services experience for SMBs when being connected with the right technology for their needs at the best value to unlock new productivity and outcomes. This model gives SMBs access to tools that have been unavailable to them until now. As the largest business segment in the U.S., SMBs total over 30M organizations who need help with their IT approach and solutions. These needs are expected to continue to increase to an addressable market of over $100B by 2025 as demand for remote work IT support and integrations to serve user and customer needs continue to rise.
Moving forward, NST will serve as the platform company for Sourcepass’ organic and inorganic growth, with plans for all future acquisitions to be integrated into the NST operating model. Sourcepass’ footprint has expanded with the addition of NST’s 155 employees and its locations in New York City, NY; Long Island, NY; New Jersey; Connecticut; and Tennessee. Sourcepass will be extending its digital capabilities via interactive web portals and mobile applications 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, positions Sourcepass to continue to buildout its digital ecosystem; make accretive acquisitions, targeting the completion of 7 acquisitions in 2022; and invest in a Go-to-Market strategy that makes it easier for SMBs to procure IT services overall.
“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. For more information about Sourcepass, please visit www.sourcepass.com.
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. For more information about NST, please visit https://sourcepass.com/.
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.
Sandra Schwartzman
Vice President of Public Relations
RMR & Associates
(301) 230-0045 x 100