MSSPs as Acquisition Targets: Software Vendor Acquires Nuspire

When it comes to technology service provider (TSP) mergers and acquisitions, many deals seem to involve a PE firm or other managed service provider as the buyer. But that wasn’t quite the case with PDI Technologies’ acquisition of MSSP Nuspire, a top 250 MSSP.

Software and services provider PDI Technologies provides ERP, data analytics, payment processing, cybersecurity and other solutions for petroleum retail and wholesale vertical markets. The company also offers some managed services and professional services to support those solutions.

But in order to acquire cybersecurity talent, services and capabilities, PDI acquired Nuspire, announcing the deal in June 2024. That’s not such a big surprise, according to Rick Murphy, founder, CEO and managing partner of buy-side M&A advisory firm Cogent Growth Partners and an expert in IT services M&A.

Murphy told MSSP Alert that while MSSPs are expensive to buy, many companies may want to acquire them. That’s because buyers can quickly get cybersecurity capabilities and talent for their companies when they buy an MSSP.

Murphy said PDI is large enough and has a broad enough customer base that it needs a variety of cybersecurity services.

“There are so many different types of cybersecurity out there now that you have to pick and choose what helps different MSSPs differentiate themselves,” he said. “So it really depends on the service stack that the MSSP is focused on. There are many different types of that service stack, and they can combine them in their macro product.”

Another well-known cybersecurity giant, SonicWall acquired Master MSSP Solutions Granted in 2023. This transaction enabled SonicWall to expand its MDR offerings for MSPs and MSSPs.

Nuspire: Not PDI’s First MSSP Acquisition

The acquisition of Nuspire marks PDI’s first M&A-based expansion into the security solutions space since launching its cybersecurity and managed network services offering in 2020 with the dual acquisitions of Cybera and ControlScan Managed Security Services.

The Nuspire deal takes those services a step further, with PDI executives saying Nuspire’s expertise in automotive retail aligns closely with PDI’s focus on the retail and fast food industries, which PDI also focuses on.

“The car dealerships served by Nuspire have similarities to the retail and QSR (fast food) industries that PDI already serves,” said Chris Berry, president of Security Solutions at PDI Technologies, in a press release. “Both are dynamic, high-volume, and complex environments connected across distributed networks where system reliability, customer satisfaction, and data security are paramount—and where vulnerabilities abound.”

Nuspire’s key offerings include Managed Security Services (MSS), Managed Detection and Response (MDR), Endpoint Detection and Response (EDR), and cybersecurity consulting capabilities such as incident preparedness, threat modeling, and executive advisory services. As an MSSP, Nuspire offers a 24×7 SOC.

“From ransomware attacks to data breaches, phishing attempts and more, cyber threats to businesses of all types, sizes and maturity levels are relentless,” Nuspire CEO Lewie Dunsworth said in a press release. “As we become part of PDI, our teams will be able to deliver and scale even more advanced security technologies that enable current and future customers to thrive in an evolving threat landscape.”