Our client is a professional services firm with over 8 years of experience within the hosting and managed services industry. The company currently has 21 hosting clients and 6 MSP clients. The services provided include colocation, email, website hosting, cloud-based PBX, and virtual private server hosting contracts. The customers are composed of nonprofits, medical groups, and technology firms. The majority of the customers have been with our client for over five (5) years with a number of the customers dating back to 2010. Revenue for this contract is derived on a monthly basis based on annual or two-year contracts for both hosting and managed services. Customers are generally on board for a five year, two year, or a one year contract which auto-renews six months pre-expiration of the initial contract for the same term. This contract is ideal for a strategic buyer that is wanting to increase its geographic footprint within the Washington DC metro area or scale its existing operations via acquisitional growth. The value proposition of this acquisition is based on the existing customers and the future cash flows and potential client expansion. However, this acquisition may include the conveyance of a 21 IP block and commodity hardware.


Strong Customer Base

Existing customers are businesses within the healthcare, technology, and non-profit sectors. Customers are financially strong and have been with our client for over 5 years.

Strong Customer retention and continued growth

The client continues to retain and grow its existing client base. Managed Services grew by 11% in 2017.

Strong income and margins from existing contracts

Established hosting clients generate $189,311.76 per year or $15,775.98 per month in gross revenues. Managed service contracts generate $138,963.00 a year, or $11,580.25 a month in total gross profits. The total gross income for the combined contracts equals $328,274.76 a year or $27,356.23 a month. The monthly net income is currently $16,639.32 per month. Any ancillary services would be an additional income to the aforementioned income.

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