Thrive Networks Inc. CEO Bill McLaughlin joined The Deal’s Behind the Buyouts podcast to discuss the company’s strategy for becoming the first billion-dollar next-generation managed services provider.

“What that means is being proactive, embedding a lot of automation and AI into our platform, being security first, making sure we’re leading with intelligence for better business outcomes and a better customer experience,” McLaughlin said.

McLaughlin outlined Thrive’s combination of organic growth and acquisitions after completing 27 deals and surpassing $400 million in revenue.

Thrive evaluates acquisitions based on people, process, technology and culture while targeting businesses that strengthen its cybersecurity, cloud, managed services and artificial intelligence capabilities, McLaughlin said. Key drivers of value include recurring revenue, operational maturity, margins and AI adoption.

AI creates enterprise value only when it creates operating value, he said, emphasizing investments in automation, ServiceNow and digital experience management. Thrive also continues expanding governance, risk and compliance capabilities following its acquisition of Abacode Inc.

McLaughlin predicted continued consolidation across the managed services market as rising technology complexity and capital requirements pressure smaller providers, while niche specialists will continue to find opportunities.

Listen to the podcast with Bill McLaughlin below:

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