Channelnomics

Master Agent Consolidation Mirrors IT Service Growth

M&A activity among master agents directly correlates with IT vendors selling services and looking for predictable resellers in a sell-thru model.
By Larry Walsh

Key Points

M&A activity among master agents is leading to accelerated consolidation.
IT service growth is driving vendors to seek reliable, predictable selling partners.
Vendors’ service sales models align better with master agents than with traditional MSPs.
Consolidation and service growth will further fuel master agent M&A activity.
Master agent growth will come at the expense of traditional resellers and distributors.

The once-staid master agent segment of the channel is buzzing with activity and evolution. Primed with private equity funding, master agents are on a shopping spree. They’re gobbling up competitors, expanding their portfolios and market coverage, and enhancing their capabiliti...

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