Deal teardown · Managed Service Providers (MSPs)

Evergreen's 2024 UK MSP acquisitions — ITBuilder, Certum and CIS teardown

On 18 December 2024, US-based MSP consolidator Evergreen announced the acquisition of three UK MSPs — ITBuilder, Certum and CIS Ltd. These joined an ongoing UK buy-and-hold rollup Evergreen began in 2023. The deals confirmed Evergreen's pattern of small-to-mid MSP acquisitions across the UK.

By Chris at Sell LtdLast updated 1 January 1970

Editorial disclosure. Sell Ltd did not advise on this transaction. This page is an editorial analysis of a publicly-reported UK acquisition. Every fact is sourced from the linked press releases and trade coverage at the bottom of the page. Quotes are lifted verbatim from those sources only; we do not invent seller quotes.

TL;DR

Evergreen acquired three UK MSPs (ITBuilder, Certum, CIS) in a single announcement in December 2024. UK MSP sales cluster at 6–10× adjusted EBITDA for scaled MSPs (£1m+ EBITDA), with SME single-owner MSPs closer to 4–6× EBITDA. The single largest lever on your multiple is the ratio of MRR (managed services recurring revenue) to project revenue.

Deal facts

Acquirer: Evergreen Services Group
Target: ITBuilder, Certum and CIS Ltd (three UK MSPs in one announcement)
Announcement date: 18 December 2024
Deal structure: Buy-and-hold acquisitions — three separate transactions announced together
Disclosed price: Undisclosed

Sector context — what this multiple means for other managed service providers (msps) owners

Typical multiple range

4–6× EBITDA for SME single-owner MSPs; 6–10× for £1m+ EBITDA MSPs with high MRR ratio

Size band this applies to

£300k–£10m turnover

UK MSP M&A is currently the most active mid-market channel in the country. Buy-and-hold platforms (Evergreen, FluidOne, Intercity, Node4-adjacent) are aggressively acquiring small MSPs to build regional density. Owners in the £300k–£1m EBITDA band routinely see 3–5 credible bids inside 90 days if the process is run properly. The multiple gap between a low-MRR project shop and a high-MRR managed-services business is the largest of any UK SME sector — often 3–5× EBITDA points on identical revenue.

What a managed service providers (msps) owner should learn from this

MRR-to-total-revenue ratio is the single biggest multiple lever. 80% MRR beats 50% MRR at the same EBITDA every day.
Contract length matters. 36-month rolling contracts price meaningfully higher than 12-month rolling.
Customer stack (SME vs enterprise, sector concentration) is scrutinised at DD — have contract-level revenue disclosed by tier.
Technical debt (unpatched RMM, outdated PSA, orphaned monitoring stack) is priced down. Consolidator DDs run through your tech stack forensically.
Engineer retention drives buyer confidence more than any single financial metric. A recent senior-engineer departure will re-cut the deal.
Cybersecurity posture (Cyber Essentials Plus, ISO 27001) is table stakes above £1m turnover and a material multiple lever below.
The Companies House filings tell a buyer as much about your business as your P&L. Have the full audit trail clean.

Illustrative · not a claim

How a Sell Ltd process would have looked

For a UK MSP in the £500k–£5m turnover band, a Sell Ltd process would run: (1) Chris drafts the confidential teaser with headline MRR, contract length distribution, engineer count and security certifications; (2) buyer matching prioritises active UK MSP consolidators (Evergreen, FluidOne, Intercity, Node4-adjacent and equivalents) with a track record of comparable acquisitions in the last 36 months; (3) IM built around MRR mix, contract stickiness, tech-stack schedule, engineer retention and cybersecurity posture. Sell Ltd did not advise on the Evergreen deals — this is illustrative of our process for owner-managed MSPs.

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Other UK deal teardowns

Nine more editorial teardowns of real UK acquisitions — one per sector — sourced from public press releases and trade coverage.

Frequently asked questions

How much did Evergreen pay for ITBuilder, Certum and CIS?

Deal values were not publicly disclosed. Evergreen's announcement confirmed the three acquisitions as part of its ongoing UK buy-and-hold platform build.

What multiple do UK MSPs sell for?

In our modelling of recent UK MSP deals, SME single-owner MSPs cluster at 4–6× adjusted EBITDA. Scaled MSPs (£1m+ EBITDA) with high MRR ratios and multi-year contracts clear 6–10× EBITDA.

How can I lift my MSP's multiple before selling?

Move project revenue into MRR contracts, extend contract length toward 36 months, achieve Cyber Essentials Plus or ISO 27001, and document your tech stack for hand-off. Doing these 12+ months out routinely moves the multiple 1–2× EBITDA points.

Should I sell to a consolidator or a strategic?

At the £300k–£1m EBITDA band, consolidators (Evergreen, FluidOne, Intercity, Node4-adjacent) dominate the bidder set and typically pay the highest disciplined price. Strategic acquirers (large corporates buying MSP capability) rarely compete below £2m EBITDA.

How long does a UK MSP sale take?

4–7 months from confidential listing to completion for a clean sub-£1m EBITDA MSP. Consolidator processes routinely run faster than any other UK SME sector.

What kills an MSP sale?

Un-documented customer contracts, informal auto-renewal terms, engineer departures during DD, unresolved cybersecurity incidents, and single-vendor stack concentration where a licence dispute could bring down the business.

How is EBITDA adjusted in an MSP sale?

Standard add-backs: owner salary, one-off tooling investment, non-recurring cybersecurity remediation, personal expenses. Buyers will strip out any ongoing engineer, licence or monitoring spend that must continue.

What Companies House data does an MSP buyer look at?

Filed accounts, PSC register, charges (any equipment finance or invoice discounting), director history. A serious consolidator buyer will also pull sample RMM/PSA data during technical DD.

What sources did you use for this teardown?

Evergreen's own PRWeb release and ChannelE2E's analysis of Evergreen's UK acquisition pattern. Sell Ltd did not advise on these transactions.

Where can I value my own MSP?

Start with our free valuation calculator and the EBITDA-multiple lookup for IT / professional services — both are linked from the /sell-my-business hub.

Sources

Every deal fact on this page traces to one of the sources below. All external.

Editorial correction? Email info@sellltd.co.uk — we correct any factual error within 48 hours.

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