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ePlus acquires Daymark to grow its Microsoft cloud business

Most acquisitions come with weeks of uncertainty while two companies figure out how to merge their cloud systems and customer accounts. ePlus says it skipped that part entirely with its latest deal.

The Herndon, Virginia-based IT solution provider announced Monday it has acquired Daymark Solutions, a Burlington, Massachusetts firm specializing in data center infrastructure, Microsoft cloud services, Microsoft 365, Microsoft Copilot, and cybersecurity. Daymark’s cloud customer base spans energy, utilities, healthcare, life sciences, defense, and financial services, industries where ePlus wanted a stronger foothold in cloud delivery, particularly across the Northeast.

ePlus sees Daymark’s Microsoft CSP standing as a shortcut. According to Kley Parkhurst, the company’s senior vice president, Daymark holds certain Microsoft cloud credentials that outpace what ePlus currently has, something that could speed up ePlus’s own enterprise cloud push once integrated. Daymark’s cloud storage expertise should also fill gaps in ePlus’s existing Microsoft cloud offerings.

Geography plays into the deal too. ePlus had struggled to gain real traction in Massachusetts’s cloud services market on its own. Daymark’s long-standing relationships with customers in the region give ePlus a regional presence it previously lacked.

Parkhurst declined to share financial terms or headcount for the acquisition, which closed Friday, though he confirmed Daymark was profitable and that every employee, including co-owners and CEO Timothy Donovan and COO Brian Casey, is joining ePlus. Both are staying on, according to Parkhurst, who said they see the move as a chance to offer their existing cloud customers ePlus’s broader portfolio without the capital constraints that come with running a small, privately held company.

This marks roughly ePlus’s 30th acquisition over the years, following its purchase of Realwave last September. Parkhurst said the company has refined its process for bringing new cloud teams and systems on board to the point where no meaningful transition period remains. “We really don’t take any integration risks,” he said. “Over the weekend, we put it into our systems, and we’re ready to rock and roll.” ePlus already has staff on-site handling training, and Parkhurst described the whole process as something the company has “down to a science.”

For now, Daymark will keep operating under its own name to preserve the goodwill it has built with its cloud customers, with the company planning a gradual shift toward the ePlus brand over time.

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