Axcient, K1’s Portfolio Firm, to Be Acquired by ConnectWise, Thoma Bravo Portfolio Company

K1 Investment Management, LLC (K1), one of the largest investors in small-cap enterprise software companies, announced that its portfolio company Axcient, a provider of advanced BC and DR solutions for MSPs, has entered into a definitive agreement to be acquired by ConnectWise LLC, a Thoma Bravo portfolio company, with the transaction expected to close in the coming weeks.

Following K1’s initial investment, Axcient focused on customer-driven innovation and strategic growth, resulting in annual recurring revenue growing by 7.5x over its investment period. During the partnership, K1 facilitated the strategic add-on acquisitions of Anchor, Cloudfinder and Replibit, further enhancing the company’s market presence and product offerings, and solidifying its position as a category leader in backup and disaster recovery software.

“K1’s partnership with Axcient has helped to transform the company’s product offerings and establish itself as a leader in the BCDR space,” said Taylor Beaupain, managing partner at K1.”Through our operational support and growth initiatives, Axcient has continued to evolve its solutions, positioning itself as a trusted name for MSPs globally.“

The acquisition by ConnectWise seeks to further accelerate Axcient’s mission to protect MSPs and their clients from growing cybersecurity risks, combining its BCDR expertise with ConnectWise’s comprehensive suite of IT management, cybersecurity, and data protection solutions. Axcient’s robust technology, including its x360 platform, has earned industry recognition for offering seamless, scalable protection to businesses of all sizes.

“Axcient’s partnership with K1 has been instrumental in scaling the company’s technology and expanding its reach,” said Rod Mathews, CEO of Axcient. “As we join the ConnectWise family, we are excited to continue delivering leading solutions that help MSPs protect their customers from ransomware attacks and other disruptions.”

With the sale of Axcient, K1 has now realized over $1.8 billion of liquidity in the past 10 months across its portfolio. This exit follows a series of successful transactions, including the recent take-private of MariaDB, the strategic growth investment in Board Intelligence, and the sale of GoCanvas to Nemetschek Group.