NextGen Data Solutions - Legacy’s Entry into Data and IT Services

In 2023, Tyler Kania and team Legacy went and identified the growing demand for data solutions and IT services and made the strategic decision to acquire NextGen Data Solutions.

The company specialized in providing data storage, cloud migration, and IT infrastructure management for small and mid-sized businesses. This acquisition represented Legacy’s move into the tech-driven field of data management, a sector with strong growth potential as more businesses shifted online and demanded reliable data support.

For Tyler, NextGen was more than just an IT company. He saw it as a business that could empower companies to scale confidently, knowing their digital assets and infrastructure were secure, efficient, and scalable.

Strategic Financing for Tech-Driven Growth
Understanding the need for immediate technological upgrades, Tyler structured the acquisition using asset-backed financing based on NextGen’s existing server infrastructure and data assets, combined with deferred payments tied to growth targets.

Key Deal Elements:

Asset-Backed Financing: By leveraging the value of NextGen’s server assets, Tyler secured financing to cover the acquisition costs and fund technology upgrades, minimizing upfront capital requirements.
Growth-Based Payment Model: A portion of the payment was deferred and tied to NextGen’s performance milestones, incentivizing continued growth and the seller’s support in transitioning key client accounts.
Building NextGen into a Top-Tier Data Services Provider
Tyler’s vision for NextGen was clear from day one: provide comprehensive, reliable data solutions that businesses could trust as they scaled in a digital-first world. He aimed to enhance NextGen’s infrastructure, client offerings, and reputation, transforming it into a data partner for businesses across industries.

Expanding Cloud and Data Storage Capabilities: Tyler invested in high-capacity, secure data servers and expanded NextGen’s cloud storage offerings. This expansion allowed NextGen to cater to larger businesses with more complex data needs, offering flexible storage solutions that could grow with each client.

Developing Cybersecurity Services: Recognizing the importance of security, Tyler introduced a cybersecurity division at NextGen. This included services like real-time threat monitoring, secure data backups, and emergency response for data breaches. This added a layer of protection that gave clients confidence in NextGen’s ability to safeguard their critical information.

Automated Data Management Solutions: Tyler led the development of an automated data management platform that allowed clients to monitor data usage, manage permissions, and track storage metrics in real time. This self-service portal made it easy for clients to stay in control of their data and improved NextGen’s customer experience.

Client Education and Support Services: Understanding that data services can be complex, Tyler implemented a strong client support program that included regular webinars, training sessions, and a 24/7 support team. By helping clients maximize the benefits of NextGen’s services, Tyler strengthened client relationships and reduced churn.

The Results and Market Impact
Within a year, NextGen Data Solutions had grown its client base by 40%, largely due to the new cybersecurity and cloud offerings. Tyler’s upgrades transformed NextGen into a trusted data partner for businesses, with revenues increasing by over 35% in the first year. For Legacy, NextGen became a reliable, high-growth asset in a tech-driven sector that provided steady income and positioned Legacy as a trusted player in data management and IT services.

Through NextGen Data Solutions, Tyler brought Legacy into a field that wasn’t just profitable but also future-focused, aligning with the digital shift in business operations and reinforcing Legacy’s diverse, adaptable portfolio. This acquisition was another step toward building an empire that spanned industries and met the evolving needs of a digital economy.