Microsoft Star Insight Enterprises Has $1.5B In M&A ‘Fuel’

Insight Enterprises generated a record $10.4 billion in sales in 2022, with $1.5 billion in financing ready for acquisitions in 2023.

Insight President and CEO Joyce Mullen

One of Microsoft’s largest global channel partners, Insight Enterprises, has its eyes set on acquisitions in 2023 thanks to its $1.5 billion in M&A financing, with the potential of buying another Microsoft channel partner.

“M&A is an important part of our strategy. As we enter 2023, we have nearly $1.5 billion in financing capacity to fuel this strategy,” said Insight President and CEO Joyce Mullen during the company’s fourth-quarter financial earnings report Thursday. “We will be deliberate in our acquisitions to support our solutions business in key growth areas such as cloud, data, AI and cyber.”

Based on the Chandler, Ariz.-based IT giant’s acquisition history, Insight could be looking to purchase another Microsoft channel partner this year. During the earnings call, Mullen highlighted Insight’s most recent acquisition of India-based Hanu Software Solutions, a Microsoft Azure Expert Managed Service Provider.

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“Hanu is a Gartner Magic Quadrant, Microsoft Azure Migration company that allows us to scale our cloud business. Hanu also has a robust recruiting and development academy to build more technical expertise in India,” said Mullen.

Hanu was dubbed a Niche Player in Gartner’s 2021 Magic Quadrant for Public IT Transformation Service Providers.

Insight’s Microsoft Focuss

Although 13,000-employee strong Insight is a $10.4 billion IT powerhouse, it does not make many acquisitions per year, such as Accenture does. Growth is driven more organically compared with via acquisition.

In fact, Hanu was Insight’s only acquisition in 2022. However, when Insight does pull the trigger on an acquisition, it tends to be Microsoft-focused.

In 2020, Insight acquired Microsoft Gold Partner vNext, which specializes in Microsoft managed cloud services for large and midmarket clients.

Insight’s largest acquisition in years came in 2019 with the purchase of PCM for $581 million. Insight said at the time that PCM would add consulting expertise in cloud and cybersecurity specializing in Microsoft cloud technology such as Azure and Office 365.

“There are significant headwinds driven by the macroeconomic environment, but we believe our broad portfolio of solutions provide us with the resiliency to navigate any economic cycle,” said Mullen. “We are well-positioned in the fastest-growing areas of the market.”

Insight Enterprises’ Record $10.4 Billion In Sales

Insight Enterprises—ranked No. 17 on CRN’s 2022 Solution Provider 500 list—generated total sales of $10.4 billion in 2022, representing an increase of 11 percent year over year.

In terms of total revenue, nearly $9 billion came via products, while more than $1.4 billion was generated from services sales. Gross profit increased 13 percent in 2022 to $1.6 billion.

The vast majority of revenue, approximately $8.5 billion, came from North America.

“We are laser-focused on execution and are building momentum towards our ambition to become the leading solutions integrator,” said Insight’s CEO.