AEA Investors' Small Business Private Equity team ("AEA SBPE") made a majority investment in Magna5, a leading provider of managed IT, cybersecurity, and cloud-based services to small and mid-sized and mid-market businesses across the U.S. The transaction was completed alongside significant reinvestment from the Company's management team. Terms of the transaction were not disclosed.
As a comprehensive managed services provider ("MSP"), Magna5 delivers 24/7 IT and network support, advanced cybersecurity monitoring, cloud hosting, and compliance-driven technology services to more than 1,700 SMB and mid-market customers across healthcare, financial services, manufacturing, legal services, construction, education, and other regulated sectors. The Company serves as a strategic, long-term technology partner, providing fully managed solutions that ensure customers' systems are resilient, secure, compliant, and properly optimized for rapidly evolving digital and regulatory demands. Headquartered in Canonsburg, Pennsylvania with an expanding network of local support centers, Magna5 is well equipped to meet the needs of clients nationwide.
"Magna5 is operating at the heart of one of the fastest-growing segments of the IT services market, where heightened cybersecurity risk and increasing regulatory requirements are driving accelerating demand for trusted full-stack technology partners," said Dan Schorr, Partner on the AEA SBPE team. "Magna5 has a track record of consistently delivering industry-leading outsourced security and compliance solutions at scale for SMBs, positioning the Company exceptionally well to address this growing market need. We look forward to supporting Bob and the entire Magna5 team as they continue building a premier national platform."
As the Company enters this next chapter, Magna5 will continue to be led by Chief Executive Officer Bob Farina and its existing leadership team. In connection with this partnership, Chris Claudio – AEA SBPE Executive Partner and former CEO of Logically, an IT MSP – will join the Company's Board. Drawing on more than two decades of experience in the managed IT and cybersecurity industry, Mr. Claudio will bring valuable strategic and operating expertise as Magna5's skilled team continues to scale the business.
"We are thrilled to partner with AEA as we enter the next phase of Magna5's growth," said Mr. Farina. "We have significantly expanded our platform over the past several years – welcoming nine new companies into the Magna5 family, growing our national footprint, earning CMMC Level 2 certification, and launching our Pentaguard security framework, among other meaningful milestones. With AEA's support, we are well positioned to build on that momentum, enhancing our security and compliance offerings, broadening our AI-enabled capabilities, and continuing to deliver the reliable, high-quality support our customers expect."