IT services provider Blue Mantis is moving into the ServiceNow arena with the strategic acquisition of Coreio, a Toronto-based firm specializing in ServiceNow consulting, infrastructure and operations (I&O), and managed services.
Portsmouth, NH-based Blue Mantis previously lacked a dedicated ServiceNow practice, but customer demand was too great to ignore, it said.
Its portfolio will now span ServiceNow consulting and implementation, IT asset lifecycle management, cybersecurity, and service desk operations.
As well as marking a major strategic play into the ServiceNow midmarket segment, the acquisition increases Blue Mantis’ Canadian footprint, including work with four of Canada’s five largest banks and select public sector clients.
“Midmarket customers are increasingly requiring workflow automation and implementation expertise, and this is where Coreio has excelled,” said Josh Dinneen, CEO of Blue Mantis. “This acquisition hits a lot of strategic levers for Blue Mantis… Coreio’s ServiceNow deep expertise, strong Canadian presence, and nearshore delivery capabilities significantly expand our ability to deliver enterprise-class services to midmarket customers.”
Capitalizing on Growth in Midmarket
The deal is interesting to observers in that it indicates a growing opportunity for ServiceNow specialists in the expanding midmarket, fueled by demand for workflow automation, AI-powered service delivery, and integrated IT operations
As a result, Blue Mantis sees the creation of a ServiceNow practice as important to serving the segment, which the firm defines as between 250 and 5,000 employees – the majority of its customer base.
“As ServiceNow expands into the down-market, the need for solutions and expertise in implementation will only continue to grow,” a Blue Mantis spokesperson told Channel Futures. “By developing these capabilities, we are able to address current customer needs and anticipate future market opportunities.”
The acquisition raises Blue Mantis’ recurring revenue to more than 60% of its total business. Managed services are increasingly important as midmarket clients look for enterprise-class capabilities delivered with flexibility and cost control.
Analysts agree the acquisition is a smart move by Blue Mantis. “Across the board, we are seeing an increased interest by B2B tech vendors in the midmarket customer segment, and this news tracks with that trend,” Shelly Kramer, principal analyst with Kramer&Co told Channel E2E.
“The Coreio acquisition nicely positions Blue Mantis to focus on and capitalize on ServiceNow’s rapidly growing midmarket customer base, leveraging Coreio’s consulting expertise. Meanwhile, Blue Mantis’ broad portfolio offerings will undoubtedly be attractive to Coreio’s customer base.”
Rob Muroff, CEO of Coreio, will take on the role of general manager of Canadian operations, ensuring cultural alignment and local expertise remain intact. “Our combined capabilities will empower clients to modernize faster, operate more securely, and unlock the full potential of their ServiceNow investments,” he said.
Final Thoughts: Opportunities Ahead for ServiceNow Ecosystem
The acquisition comes as the ServiceNow partner ecosystem is booming, in which ServiceNow has invested $150M through its Ecosystem Ventures program.
Partner-sourced Annual Contract Value (ACV) has reportedly grown from 8% to 20% in two years (2022–2024). In Q2 2025, partners accounted for 22% of net-new ACV.
The company views AI as a major growth engine, positioning its platform as the agentic operating system for enterprises. This is expected to drive faster projects and higher value for partners. In Q2 2025, AI-related deals saw 40% of net-new ACV being partner-sourced – the biggest quarter ever for partners in AI.