NewSpring Exits Managed IT Services Platform Company Magna5

Following 8x Revenue Growth and National Platform Expansion, Transaction Positions Magna5 for Continued Scale

RADNOR, Pa., Feb. 3, 2026 /PRNewswire/ -- NewSpring ("the Firm"), a family of private equity strategies, today announced that NewSpring Holdings, the Firm's majority investment strategy focused on building institutionalized platforms of scale in the lower-middle market, has sold its managed IT services platform company Magna5 to AEA Investors.

As a NewSpring Holdings portfolio company, Magna5 grew into a national provider of managed IT, cybersecurity, and cloud-based services to a wide range of businesses including within highly regulated industries. Magna5 enters its next phase as a robust, national managed services platform, well-positioned for continued growth.

"Magna5 reflects NewSpring Holdings' thesis-driven, systematic approach to building platforms of scale in fragmented markets. By intentionally pairing Magna5 with proven technology services industry leader Bob Farina, and combining that expertise with a disciplined acquisition and integration strategy, we built a fully-integrated platform capable of solving increasingly complex IT and cybersecurity challenges," said NewSpring General Partner Jim Ashton. "We're proud of what we've accomplished with Magna5 and wish the entire team continued success."

Over the course of NewSpring's investment, and through a disciplined operating and M&A strategy, Magna5 increased its managed services revenue 8x and expanded its employee base nearly six times to a headcount of 265. The company also successfully expanded its reach into new markets, including financial services, healthcare, education, and CMMC, further diversifying its customer base and strengthening end-market resilience.

Magna5 completed and successfully integrated nine acquisitions in the highly fragmented, regional managed services provider market. NewSpring's value creation team worked alongside management to drive a repeatable, risk-reducing operating model, including implementation of a unified technology stack, institutional-grade sales infrastructure, standardized operating processes, operating KPIs and financial reporting discipline, and leadership development programs.

"NewSpring invested in Magna5 during a key inflection point in our company's growth story. Their value creation support and M&A expertise allowed our leadership team to stay focused on providing unparalleled service to our customers, while putting the right structure and resources in place to support our long-term direction," said Magna5 CEO Bob Farina. "We're grateful for NewSpring's partnership and look forward to working alongside the AEA team to continue the momentum."

NewSpring Holdings partners with founder-led companies to systematically build institutionalized platforms of scale around compelling industry theses in fragmented markets. Through close collaboration with management, the team designs and executes a targeted M&A strategy to consolidate complementary businesses and unlock further value through deep integration. NewSpring Holdings applies a disciplined operating approach focused on building the systems, processes, and operating cadence required to scale efficiently and reduce risk. At every stage, the Firm leverages its network to identify and partner with proven industry leaders to guide platform strategy and execution.

Canaccord Genuity acted as exclusive financial advisor to Magna5 and NewSpring Capital. Blank Rome LLP served as legal counsel and BDO provided accounting support.

About NewSpring

For more than 25 years, NewSpring has partnered with founders and management teams in the lower-middle market, providing capital, operational support, and strategic guidance to help businesses scale. With over $3.5 billion in assets under management and more than 250 investments completed, we bring operational experience and investment expertise to build market-leading companies in sectors where we can combine deep market insight with a repeatable, informed approach, such as technology, healthcare, business services, consumer, and industrials. Through five distinct strategies covering the spectrum from growth equity and control buyouts to mezzanine debt, we tailor our approach to each company's stage and goals, always with a focus on sustainable growth. As specialists in the lower-middle market, we support growth that leads to more predictable outcomes. At NewSpring, we are as invested in your outcome as you are. Visit NewSpring at www.newspringcapital.com.

About Magna5

Magna5 provides cybersecurity, managed IT services, cloud hosting, compliance services, consulting and procurement to SMB, mid-market, and enterprise customers, including leaders in healthcare, financial services, construction and engineering, legal services, education, and other industry segments. Headquartered in Canonsburg, PA, with local support centers across the US, Magna5 has customers nationally. For more information, visit www.magna5.com.

SOURCE NewSpring Capital