Case Study: My Blue Umbrella
The Business
My Blue Umbrella (MBU) is a full-service IT business transformation company in the Greater Toronto Area. The business launched in 1996, initially as an IT value-added reseller (VAR), with the goal of bringing an umbrella of services to business leaders seeking an expert IT partner. The company’s founder, Michael Contento, was an early adopter of technology and had a vision for an organization that could provide strategic guidance to business leaders as they navigated the digital economy.
The Challenge
By 2021, MBU had grown to 26 employees and reached $6 million in annual revenue. The company’s current mission was to scale to $40 million and expand its IT business transformation services. However, CEO Michael Contento realized that as his company grew, he and his team would not be able to scale successfully in the competitive IT market. Michael sought an opportunity to join an IT partner who could complement the company’s strategy, allow him and the team to regain time and focus, and innovate more quickly.
Like many business owners, Michael spent many years building a successful and prosperous business so when it came to selling his company, it was an important decision. Michael shopped around but found that most MSPs were either too small to offer the resources he needed or too big to care about his individual needs. Additionally, MBU had to optimize their business operations and increase their contractual revenue to meet industry benchmarks for acquisition opportunities.
F12’s Acquisition Approach
Through close relations in the IT community and referrals from investor connections, MBU merged with F12.net, one of Canada’s largest and fastest growing managed service providers for SMEs.
F12 implemented an aggressive 100-day integration plan for integrating MBU. Together, they were determined to ensure a successful integration and support their customers and employees through the process.
Over the next 100 days, F12 and MBU aligned their financial reporting, identified synergies to realize savings for their combined business, and established development plans for their employees’ roles.
The companies also built a growth strategy for the future—one focused on customer and employee success. This strategy was centered around improving IT solution offerings, operations, cultural alignment, consistent processes, tools, and systems.
Results of Joining your Business with F12
F12 and MBU’s merger has created a technology services powerhouse, resulting in multiple benefits for clients, staff, and investors.
The merger between F12 and MBU has positioned both companies for future growth, providing the ability to create new services, attract new clients, strengthen employee value proposition, and expand further into the Ontario market.
“Adding MBU to the F12 family has been an exciting milestone in our growth trajectory and has bolstered our business innovation services,” says Alex Webb, CEO of F12.net. “MBU is uncommon among MSPs, moving beyond core infrastructure to include strategies to accelerate business productivity through innovation. I know Michael will be instrumental in helping our clients unlock technology’s potential.”
“This opportunity to join the F12 team and leverage their suite of technology services and bench strength has allowed me and the team to focus on things that will make a real difference for our clients,” says Michael Contento. “I am thrilled to bring our talents to a collectively extraordinary F12.”