Improving Acquires Google Cloud Application Consultancy YoppWorks; Scales up to $200 million in revenue

Digital services firm Improving, backed by private equity firm Trinity Hunt Partners, has acquired YoppWorks, an app development consultancy with expertise in Google Cloud and Lightbend. Financial terms of the deal were not disclosed.

The deal is expected to push Improving’s annual revenue above the $200 million mark, the buyer said.

Curtis Hite, CEO, Improve

This is the number 236 technology M&A deal that ChannelE2E has covered so far in 2022. Discover over 1,000 technology M&A deals involving MSPs, MSSPs and IT service providers listed here.

In this particular offer:

  • The buyer: Improving has over 1,000 employees listed on LinkedIn. The company positions itself as a “comprehensive IT services company, offering training, consulting, recruitment and project services”.
  • Seller: YoppWorks has 90 employees listed on LinkedIn. The company positions itself as a consulting organization that “helps companies rethink the way they build software to stay competitive, relevant, and capitalize on market opportunities.” Key areas of expertise include Scala programming language, Akka Open Source toolkit, containerized native cloud environments and applying reactive architecture, the vendor says.

Improving M&A: Past acquisitions of IT services and technology consulting

Meanwhile, private equity firm Trinity Hunt Partners has owned Improving since July 2018. For its part, Improving has a track record in mergers and acquisitions dating back to 2007. Sample deals:

  • August 2021: Tahoe Partners, a Microsoft professional services firm, in August 2021. This particular deal pushed Improving’s annual revenue to around $185 million.
  • August 2020: Object Partners, an Amazon Web Services custom software developer. This deal brought annual revenue to $150 million.
  • August 2017: ProSource Solutions, a Microsoft partner that was expected to increase Improving’s annual revenue by more than $10 million in 2018.
  • August 2017: The Willow Band from Minneapolis, Minnesota.
  • December 2013: Quadras Development of Calgary, Canada.
  • September 2012: Alphaware Training Center in Houston, TX.
  • December 2010: The Sophic Group, a Microsoft partner in Columbus, Ohio.
  • January 2007: Blue Ocean Group and Improving Enterprises merged.

Improving Acquires YoppWorks: Management Insights

In a prepared statement on the YoppWorks deal, Improving CEO Curtis Hite said:

“We have always been impressed with the YoppWorks team and their commitment to delivering innovation to their customers. There is incredible alignment between our two companies on corporate philosophy and corporate culture, and we couldn’t be more enthusiastic about integrating them into the Improving brand.

Jack Gulas, CEO of YoppWorks, added:

“This is a very exciting announcement. We have experienced phenomenal growth over the past year and joining the Improving team will provide us with the structure to continue to evolve our business and provide our clients with new product offerings. The improvement culture is amazing and very similar to YoppWorks and I see it as a 1+1=3 for all of our team members and our customers.

Trinity Hunt Partners: Cloud Consulting, MSP Investments

The owner of Improving, private equity firm Trinity Hunt Partners, has extensive experience in and around the IT consulting and MSP (managed IT service provider) markets. Example investment activity in Trinity Hunt includes transactions such as…

It is a safe beet, more details to come. Indeed, Trinity Hunt Partners raised $460 million for Fund VI in September 2021. This fund will focus on small-cap companies in the business, healthcare and consumer services sectors, Trinity Hunt said.

Trinity Hunt Partners: acquisitions targeted by private equity

Generally, Trinity Hunt Partners targets U.S. companies with annual EBITDA (earnings before interest, taxes, depreciation and amortization) between $4 million and $25 million, the company’s website says.

When Trinity Hunt Partners finds an ideal target, the private equity firm typically invests between $15 million and $50 million in each portfolio company – with the option to invest additional equity through limited partner co-investment, adds the company website.

The types of transactions typically involve significant majority and minority recapitalizations, buyouts and management buyouts, the private equity firm notes.

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