# What happened
# Who's involved DivergeIT: A MSP/MSSP with more than 27 years in business and a history of high customer satisfaction and retention. Jarrod Koch will continue as CEO and lead the company through this growth phase.
# The plan DivergeIT will use the investment to:
- Fuel organic growth and broaden its solution portfolio. This includes advancing capabilities described as AI-driven to meet evolving customer needs.
- Invest in talent and technology to maintain technical expertise and service quality.
- Pursue acquisitions of complementary MSPs nationwide and use DivergeIT as a platform for consolidation.
Jarrod Koch will remain CEO and partner with M|C Partners to identify and integrate acquisition targets while continuing to scale DivergeIT's organic business.
# Why the investment was made M|C Partners cited the growing complexity of IT environments and the changing technology stack as reasons for continued conviction in the MSP market. The firm sees an opportunity to scale a customer-focused MSP that can serve as a trusted IT advisor to mid-sized enterprises and to consolidate across a fragmented market.
# What this means for customers and the market Customers can expect continued leadership and an emphasis on customer service, given DivergeIT's existing high retention and satisfaction metrics. The additional capital aims to expand service offerings, add technical capabilities, and integrate acquired MSPs into a single platform. For the broader MSP market, the transaction signals continued private equity interest in platform-based rollups and capability-building in managed services.
- Jarrod Koch, CEO of DivergeIT: He said the partnership positions DivergeIT to build on its customer-first approach, invest in people and platform, and add other MSPs to the DivergeIT family.
- Arvind Viswanathan, Principal at M|C Partners: He highlighted the opportunity for DivergeIT as IT complexity rises and AI reshapes the technology stack.
- Gillis Cashman, Managing Partner at M|C Partners: He reiterated the firm's conviction in the MSP market and their excitement to partner with DivergeIT.
# Next steps DivergeIT will deploy capital to expand services and pursue acquisitions in the coming months. The company's public materials point to both organic investment and disciplined, accretive acquisitions as immediate priorities.
# Bottom line This is a growth-and-consolidation move: DivergeIT gains capital and a private equity partner to scale its services and buy complementary MSPs, while M|C Partners acquires a platform to pursue expansion in the managed IT and security services sector.