ITS expands Sacramento presence with Afineol acquisition

CALIFORNIA, UNITED STATES — A significant merger in the managed IT services sector has taken shape as Las Vegas-based Intelligent Technical Solutions (ITS) acquires Sacramento’s Afineol IT Consulting. This marks ITS’s eighth acquisition since 2022.
Strategic growth in Northern California
The acquisition strengthens ITS’s foothold in the Sacramento region, where Afineol has built a strong reputation since its founding in 2000. ITS, generating approximately $60.1 million in annual revenue with 268 employees, continues its aggressive expansion across the Western United States.
Margaret Strong, President of Afineol, emphasized the benefits for their clients: “Our clients have always trusted us to handle their IT needs, and this partnership allows us to elevate that trust. Working with ITS gives us the tools to offer even more advanced services, while maintaining the personalized support we’re known for.”
Operational integration between ITS, Afineol
Afineol, a boutique MSP with seven employees and an estimated annual revenue of $507,500, will maintain its current team while gaining access to ITS’s expanded resources. The merger particularly benefits Afineol’s clients, who will now have access to ITS’s comprehensive suite of cybersecurity, managed IT, and consulting services.
Tom Andrulis, CEO of ITS, highlighted the deal’s strategic importance: “This collaboration strengthens our ability to provide even more comprehensive support and advanced technologies to our clients in Sacramento. Together, we’re poised to drive growth for both companies and deliver exceptional results for our clients.”
The acquisition, backed by Tower Arch Capital, represents another milestone in ITS’s expansion since their partnership began in May 2022. ITS now serves over 750 clients across various sectors, including healthcare, non-profit, automotive, and professional services. While specific terms remain undisclosed, Deerpath Capital financed the transaction, with Holland & Hart LLP and BDO USA LLP serving as advisors.
Outsourcing as a key driver of global labor changes
As companies seek to optimize operations amid growing technological demands, outsourcing critical functions like IT management has become essential.
In an era of accelerating digital transformation across industries, the role of managed IT service providers is becoming increasingly pivotal. By consolidating smaller firms like Afineol into larger entities like ITS, companies can offer more comprehensive solutions to meet the evolving needs of businesses worldwide.