It appears there's a strategy unfolding in the Managed Service sector to consolidate, especially given the squeezed margins. One could speculate about the acquisition of smaller publicly traded MSPs. Additionally, Orro Group, a private equity outfit supported by Macquarie funds, is scanning the market and has already made multiple acquisitions. Some of the more diminutive players, like FSG, HFY and CCG, bear the burden of listing costs, suggesting they might find better value being wrapped up by a bigger entity. Not sure if there will be a higher bidder for CNW as it is a very low margin business and only works if bolted onto a larger business.
Recent Transactions Thales and TNT, Orro acquired QTEC and Noojee i think they have 8-10 in total.
CNW Price at posting:
5.4¢ Sentiment: None Disclosure: Not Held
