Magna5

Canaccord Genuity Advises NewSpring on Sale of Majority Stake in Leading IT Managed Services Provider Magna5

Canaccord Genuity has advised NewSpring on the sale of its majority stake in Magna5, a leading provider of managed IT, cybersecurity, and cloud-based services to small and mid-sized (SMB) businesses across the U.S., to AEA Investors’ Small Business Private Equity team (AEA SBPE). 

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 across the U.S., Magna5 is well equipped to meet the needs of clients nationwide. 

Magna5 was previously a portfolio company of NewSpring Holdings, NewSpring’s majority investment strategy focused on building institutionalized platforms of scale in the lower-middle market. For more than 25 years, NewSpring has partnered with founders and management teams in the lower-middle market, providing capital, operational support, and strategic guidance to help businesses scale. With in excess of $3.5 billion in assets under management and more than 250 investments completed, the firm brings operational experience and investment expertise to build market-leading companies in sectors where it can combine deep market insight with a repeatable, informed approach, such as technology, healthcare, business services, consumer, and industrials. Through five distinct strategies covering the spectrum from growth equity and control buyouts to mezzanine debt, NewSpring tailors its approach to each company’s stage and goals, always with a focus on sustainable growth. As specialists in the lower-middle market, the firm supports growth that leads to more predictable outcomes.