MSP Investment Platform Company Profiles:
Have you ever contemplated an exit from your managed service provider, selling the company you founded either to another MSP, MSSP or private equity firm? Plenty of MSPs have done just that over the past several years. Monthly recurring revenues make MSPs an attractive investment for private equity and other investors.
You may even have been contacted by bigger MSPs or by private equity firms asking about whether you plan to sell.
If you are ready to sell or getting ready, what’s the next step? How do you decide which “platform” company is a fit for your MSP? Will you choose an exit, or do you want to stay with the company after it is acquired? Will the acquiring company fully absorb your company into its existing operations or will it maintain your brand and IT stack? What’s the acquirer’s culture and business philosophy? And has the acquirer discussed their own exit plan? What happens if and when they decide to recapitalize or sell?
These are key questions as you evaluate which MSP platform company is right for your ultimate exit.
To help you answer these questions, ChannelE2E, the destination for MSP merger and acquisition news and insights, has launched a series of company profiles that take a deeper look at MSP platform investment companies.
Think of this as your guide to MSP platform companies. We’re launching this landing page with a few profiles, but we will update this page on a regular basis so you have a single place to go for all the information you need on MSP platform companies. So bookmark this page and check back weekly as we add more profiles.
Here’s the ChannelE2E MSP Platform Company Guide:
BrightWorks IT’s Strategic Approach to Mergers and Acquisitions
BrightWorks IT prioritizes cultural fit as a core element of its acquisition strategy.
BrightWorks IT was established with a vision to blend technical expertise with a strong cultural foundation, according to Damen Seminero, chief operating officer. He said the company’s leadership prioritized collaboration and inclusivity from the outset. Seminero emphasized that this foundational approach, which focused on shared values and clear goals, helped guide the company's early growth and continues to shape its strategic direction today.
BrightWorks IT is a network of MSPs that share resources, best practices, and expertise. The company is backed by private equity firm Cloud Equity Group.
BrightWorks IT looks to fill competency gaps or provide new expertise to expand its capabilities into new industry verticals and service offerings. Financial stability and potential for growth are important, according to Seminero.
Read the full profile of BrightWorks IT here.
Evergreen: A Buy-and-Hold Approach to MSP Acquisitions
Evergreen SG has become a notable player in the MSP sector by strategically acquiring companies while allowing them to retain their brand, team, and operational autonomy.
Since 2017, Evergreen has expanded its reach across North America, the UK, Australia, and New Zealand. Unlike traditional roll-up strategies, Evergreen’s acquisition model is based on a decentralized operating approach, providing a permanent home for businesses without integrating them into a larger organization. This strategy preserves the identity and autonomy of each acquired MSP, helping maintain high employee and customer retention rates.
Evergreen’s non-integration approach extends to cybersecurity through its partnership with Lyra Technology Group, ensuring consistent cybersecurity standards across its portfolio.
This decentralized model mitigates risks, allowing each MSP to operate independently without affecting the overall portfolio. The company’s focus is on sustainable growth and stability, employing a buy-and-hold strategy that avoids selling its acquired businesses, ensuring long-term investment and development for the companies within its network.
Read the full profile of Evergreen here.
Fulcrum IT: Prioritizing Long-Term Partnerships and Innovation
Fulcrum IT allows acquired companies to retain their branding and operational independence, fostering an environment focused on innovation and growth.
Led by Chief Strategy Officer Kelly Carter and Global President Kyle Lanzinger, Fulcrum IT’s acquisition strategy is both methodical and flexible, often leveraging relationships with industry advisors to identify potential targets.
The company emphasizes thorough due diligence and seamless integration through a structured onboarding process, including a 100-day plan focusing on understanding operations, identifying growth opportunities, and enhancing collaboration. Cybersecurity is also a key focus for Fulcrum IT, addressed through strategic partnerships and plans to acquire a Security Operations Center (SOC) to provide consistent and integrated security services across its portfolio.
By prioritizing growth synergies and long-term value creation, Fulcrum IT ensures sustainable expansion and innovation for its portfolio companies, positioning itself as a significant player in the evolving MSP landscape.
Read the full profile of Fulcrum IT here.
New Charter Technologies: Scaling with a Relationship-Driven Approach
New Charter Technologies, led by CEO Peter Melby and backed by private equity firm Oval Partners, focuses on helping MSPs grow through strategic acquisitions. The platform aims to scale businesses while maintaining close client and employee relationships. Since its inception, New Charter has completed around 25 acquisitions, approaching $300 million in revenue with 1,200 employees.
New Charter's strategy integrates acquired companies without disrupting their core identity, allowing them to retain their existing brands and cultures. This approach has resulted in record-low turnover and consistent organic growth. Cybersecurity is a cornerstone of New Charter’s operational strategy, supported by their Security Operations Center (SOC) under the brand Cyber74, providing advanced security services and ensuring consistent security standards across all MSPs within the platform.
Through strategic acquisitions and a focus on preserving the strengths of acquired companies, New Charter continues to expand its footprint while maintaining high standards of service and security.
Read the full profile of New Charter Technologies here.
From Networking to Acquisition: How Ntiva Integrates New MSPs
Ntiva, a platform MSP, began expanding through acquisitions in 2017 after securing private equity backing. Ntiva’s M&A process aims to maintain service quality and client relationships while leveraging Ntiva’s broader resources and expertise.
Like many platform MSPs, an important aspect of Ntiva’s strategy is its emphasis on cultural fit and building trust. According to Christopher Vollmond-Carstens, Ntiva’s chief M&A officer, the company prioritizes building a strong rapport with potential acquisition targets before finalizing any deals.
This approach ensures that the merging entities share similar values and business philosophies, according to Vollmond-Carstens. Ntiva is backed by private equity firm PSP Partners, a Chicago-based family office investment firm led by Penny Pritzker, the former U.S. Secretary of Commerce. The firm focuses on long-term investments, partnering with companies to support sustainable growth and development.
Read the full profile of Ntiva here.
Thrive: A Security-First Approach to Growth
Thrive, founded in 2000 in Concord, Massachusetts, stands out among platform MSPs with its security-first strategy. The company integrates advanced cybersecurity measures, cloud solutions, and traditional IT services, powered by ServiceNow, to offer a comprehensive managed services platform. Under the leadership of Bill McLaughlin, Thrive has expanded from a regional focus to a national and international presence, including acquisitions in Canada and the UK.
Thrive’s aggressive acquisition strategy targets MSPs that align with its culture and long-term vision, particularly in cloud security. A key element of Thrive’s approach is fully integrating each acquisition into its operations within 9 to 12 months, ensuring a seamless transition and maintaining consistent service across all locations. Thrive’s emphasis on cybersecurity extends to every aspect of its business, making it a leader in providing secure and integrated managed services.
Read the full profile of Thrive here.
The 20 MSP: Growing a Family of Million-Dollar MSPsThrive: A Security-First Approach to Growth
The 20 MSP founder Tim Conkle imagined a collaborative network of many MSPs, where owners could share wins from one company to the next. For instance he evisioned a world where MSPs could share labor consumption. For example, if your MSP had an Azure expert but you didn’t have enough work for them to do, another MSP could use that expert for their clients.
This model would allow cooperating MSPs to offer a more competitive and cohesive service across different geographic regions. The 20 MSP aimed to optimize operational costs and enhance service efficiency by pooling resources like labor and technical expertise, thus leveraging shared knowledge and infrastructure to benefit all members of the network.
That initial step led to a company that is now a substantial force in the industry, with over 30 acquisitions and an expanding network of MSPs that operate cohesively under a unified business model.
When an MSP joins The 20, they start out by joining “the group.” This allows the MSP to take advantage of any skills or services offered by other team members. It also allows The 20 a firsthand look at the company’s operations.
In order for an MSP to get to the point where they can be acquired, they need to make around $1 million in revenue. They also need to have taken part in the community, explained Conkle.
