IT solution provider Arctiq has finalized its acquisition of Verinext, creating a combined entity poised to deliver a broader array of managed IT solutions. The acquisition, completed in early February, merges two companies with complementary capabilities and no overlap in geography, customers, or expertise.
"We had what I think is a great managed security offering, and Verinext had a great managed backup and managed network offering", said Arctiq CEO Paul Kerr. "There was no overlap. No overlap in geography, no overlapping customers. Now all of a sudden, we can do more for our customers in terms of managed IT. We could do managed security for them, but we didn’t have a managed backup offering. Now together, we can go to those customers and manage more of their operations together."
A Strategic Partnership
The deal brings together Nashville, Tenn.-based Arctiq and Blue Bell, Pa.-based Verinext, both ranked among CRN’s 2025 Solution Provider 500. Arctiq, which specializes in cybersecurity, AI, IT automation, and data center solutions, gains valuable managed data protection expertise from Verinext. Verinext, in turn, contributes a mature networking practice that complements Arctiq’s existing network capabilities.
"While Arctiq had a great network business as part of its data center business, Verinext had a much more mature networking practice. Therefore, Arctiq going forward will have a complete standalone networking practice to support its customers", Kerr explained.
In addition to technical synergies, the acquisition expands Arctiq’s financial capabilities. Verinext brings robust options for customers seeking leasing models tailored to capital expenditures (Capex) or operational expenditures (Opex). "We did not have that Opex model. With Verinext capital, we will have access to that type of financing for our customers across North America", Kerr said.
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Private Equity: The Driving Force
Both Arctiq and Verinext were private equity-backed prior to the acquisition, which played a pivotal role in the deal. "In Verinext’s case, their private equity was looking to sell and ours was looking to buy", Kerr revealed. "Otherwise it would have been Verinext buying us. In this case, Gallant Capital Partners, the private equity firm I work with, worked with Verinext’s private equity firm. It’s just a transaction. All we did was consolidate banks."
Kerr emphasized the importance of private equity in enabling growth through acquisitions. "Traditionally, if you’re not private equity-owned, it’s hard to grow through acquisition", he said. "Private equity opens that path for us. Otherwise, you’re left with pure organic growth. You’ve got to work harder, sell more to customers, take that capital that you’ve earned from the first customer to go and hire additional people to in hopes getting growth."
Cultural Alignment and Integration
The two companies also see their alignment in culture as a significant advantage for the merger. "One of the things that really took off for us in our conversations with Arctiq and Paul and his team was the cultural fit and even to the name of the company", said Verinext President Ashby Lincoln. "The Arctiq name is short for ‘architecture IQ,’ and that’s the same starting point in what we do every day for our customers and our employees. And if you believe in doing right by people and being really good at what you’re talking about and working hard to take care of people, finding somebody else that is like-minded is tremendously valuable. And we’ve done that here."
Lincoln noted that the acquisition provides Verinext with increased resources, expanded geographic reach, and more support for customers. "It took 20 years to grow to a certain size, and then in the last four we were able to double that size", he said. "And then here we go again. What comes with the acquisition is more resources, geography expansion, and more support for our customers."
Future Growth Plans
As the integration process begins, leadership from both companies is focused on ensuring a seamless transition while prioritizing customer outcomes. "Supporting the field and the customers has to stay front and center", Kerr said. "You can’t get mired in integration. It’s all about the customer and the outcome we deliver, so it’s important to not lose sight of that."
The combined company, now operating under the Arctiq name, has more than 500 employees and serves over 750 accounts. Leadership is optimistic about the opportunities ahead. "It takes time to build a business", Kerr said. "You could spend maybe five-plus years building a business. With this transaction, we get to come together with an unbelievable southeast and Pennsylvania presence that might have taken us a decade to do, and then it may not have been successful."
Arctiq and Verinext were introduced by Guggenheim Partners, which facilitated the deal’s progression. "They’re the ones that made the introductions", Lincoln said. "Their job is really to connect buyers and sellers and to shepherd the process. And they’re the best in the industry."
While financial terms of the deal were not disclosed, the acquisition marks a key milestone for Arctiq as it continues to pursue both organic and acquisition-driven growth. With six additional acquisitions in the pipeline, the company is poised to further strengthen its position in the managed IT services market.
