RADNOR, PA — NewSpring said its NewSpring Holdings strategy has sold managed IT services provider Magna5 to AEA Investors, marking the exit of a platform the firm built into a national player through acquisitions and operational expansion.
Magna5, which operated as a NewSpring Holdings portfolio company, grew into a provider of managed IT, cybersecurity, and cloud-based services serving businesses across multiple sectors, including highly regulated industries. Under NewSpring’s ownership, the company expanded into financial services, healthcare, education, and CMMC-related markets, broadening its customer base and strengthening resilience across end markets.
“Magna5 reflects NewSpring Holdings’ thesis-driven, systematic approach to building platforms of scale in fragmented markets,” said Jim Ashton, general partner at NewSpring. He said the strategy paired industry leadership with disciplined acquisition and integration to create a fully integrated platform capable of addressing complex IT and cybersecurity challenges.
During NewSpring’s investment, Magna5 increased managed services revenue eightfold and expanded its workforce nearly six times to 265 employees. The company completed and integrated nine acquisitions in the fragmented regional managed services provider market, supported by a standardized operating model, unified technology stack, institutional sales infrastructure, and enhanced financial reporting and leadership development.
NewSpring said its value creation team worked closely with Magna5 management to establish repeatable processes designed to scale efficiently while reducing operational risk.
“NewSpring invested in Magna5 during a key inflection point in our company’s growth story,” said Bob Farina, chief executive officer of Magna5. He said the firm’s operational and M&A support allowed management to focus on customer service while building the structure needed for long-term growth.
Following the transaction, Magna5 enters its next phase as a national managed services platform under AEA Investors, positioned for continued expansion.
Canaccord Genuity served as exclusive financial advisor to Magna5 and NewSpring Capital. Blank Rome LLP provided legal counsel, and BDO supplied accounting support.
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