AVG Snaps Up Level Platforms in MSP Play

Peter Sandiford

Level Platforms CEO Peter Sandiford

The feeding frenzy in the managed services space just keeps rolling along with the announcement this morning that security vendor AVG Technologies N.V. is set to plunk down an undisclosed sum to buy remote monitoring and management software maker Level Platforms Inc.

AVG, which already boasts more than 1,000 cloud reseller partners, stands to gain access to 1,500 Level Platforms MSPs and expects to add Level Platforms’ Managed Workplace to its AVG CloudCare freemium cloud-based platform  as part of the deal, officials said.

While AVG may be better known as a consumer level privacy and security player, it has made inroads in the SMB services space with notable purchases of German PC optimization and performance vendor TuneUp and more recently Web privacy specialist PrivacyChoice. In that context, the marriage of security and RMM capabilities represents “a natural evolution,” AVG officials said. And the combination of the pair’s reseller rolls should provide quick and sustainable opportunities for cross-selling and upselling both portfolios across the partner base.

The latest buy is part of AVG’s ongoing effort to move up the stack into the B2B space. It’s also an example of the ongoing consolidation in the market for tools that serve as the underpinnings for MSP practices. The Level Platforms acquisition comes just weeks after IT management software vendor SolarWinds Inc. jumped into the MSP market with a $120 million all-cash deal to acquire Ottawa-based RMM vendor N-able Technologies Inc.

Other moves in the profitable MSP space include Dell Inc.’s purchase of Everdream, SilverBack and Quest PacketTrap over the last six years. In addition, Summit Partners bought the RMM assets from Zenith Infotech in 2011 and formed Continuum, while ConnectWise has invested heavily in LabTech to form a federation of managed services companies.

“Our two companies share a goal of delivering a powerful, cloud-based IT management platform for MSPs that profoundly simplifies the way you service and protect your small business customers,” John Giamatteo, COO of AVG Technologies said of the Level Platforms acquisition. “AVG is in a position to develop Level Platforms’ product portfolio and deliver a significantly enhanced product offering globally, leveraging our brand and organization to support growth.

“The technology requirements for small businesses are increasing day by day as the world migrates towards a mobile working environment,” Giamatteo added. “AVG has the infrastructure and partner base to enable customer growth in a safe, cost-effective and secure way.”

“Since founding the company our mission has been to establish Level Platforms as the ubiquitous remote monitoring, management and automation platform for IT service providers around the world,” said Level Platforms CEO Peter Sandiford said in a statement. “By adding Level Platforms software to the AVG portfolio, AVG will be in a position to deliver the most comprehensive, innovative, high quality and high performance platform for SMBs and their MSPs in the market.”

AVG’s purchase of Level Platforms is expected to close by the end of the month.