In a strategic move to consolidate its national footprint and enhance its service offerings, The 20 MSP, a managed IT services provider, announced the acquisition of three MSPs: Drivetech, Accurate Computer Solutions (ACS), and Blue Cactus Consulting. Financial information was not disclosed.
These are technology M&A deals numbered 56, 57, and 58 that ChannelE2E and MSSP Alert have covered so far in 2024. See more than 2,000 technology M&A deals for 2024, 2023, 2022, 2021, and 2020 listed here.
The 20 MSP, founded in 1986, is based in Plano, Texas. The company has 147 employees listed on LinkedIn. The 20 MSP’s areas of expertise include business development, NOC services, 24/7 helpdesk, sales coaching, backup and disaster recovery, MSP business consulting, VoIP, copiers, printers, cybersecurity, marketing, HIPAA, business continuity, HaaS, cloud services, on-site support, remote support and support desk.
Drivetech, founded in 1984, is based in Acton, Massachusetts. The company has nine employees listed on LinkedIn. Drivetech’s areas of expertise include network installations and support and complete disaster and recovery programs.
Accurate Computer Solutions, founded ten years ago, is based in Boerne, Texas. The company has four employees listed on LinkedIn. ACS’s areas of expertise include computer repair, Mac repair, IT/computer managed services, network/internet security, backup & disaster prevention, IT/computer consulting, and project management & project engineering.
Blue Cactus Consulting, founded in 2022, is based in Phoenix, Arizona. The company has one employee listed on LinkedIn. Blue Cactus’ areas of expertise include truly all-inclusive managed IT department, 24/7 US-based help desk, cloud services, cyber security, backup & disaster recovery, server & network administration, technology strategy, providing services nationwide.
Acquisition Strategy and Growth Plans
The acquisitions are the latest in a series of strategic moves by The 20 MSP to expand its client base and deepen expertise across several key areas.
According to the buyer, these three MSPs have shown steady year-on-year growth as members of The 20 MSP Group, a consortium of over 150 MSP members that leverage shared processes and resources to compete effectively in the managed IT services market.
Indeed, the 20’s acquisition strategy involves selecting companies from within The 20 MSP Group, which is meant to ensure smoother integration processes and cultural alignment, according to the company.
Industry Impact and Integration Process
Tim Conkle, founder and CEO, The 20 MSP, commented:
"With these deals closed, we now have thirty acquisitions under our belt. We’ve really hit our stride in terms of making these integrations seamless and minimally disruptive to end clients." He further noted the benefits of their unique M&A approach, which focuses on acquiring MSPs that are already part of The 20 MSP Group. This strategy minimizes attrition and friction often associated with traditional M&A deals, facilitating smoother integrations.
Pinecrest Capital Partners served as the exclusive financial advisor to The 20 MSP on these acquisitions. Funding for the transactions was provided by Texas-based Sunflower Bank, acting as the sole lead arranger in a syndicated credit facility for The 20 MSP.
Previous acquisitions included Data Tech Café in February 2024 and Dallas Network Services, and Integrated Business Technologies (IBT) in February 2023. In April, The 20 acquired UNI Computers (Kansas), CyberSecure IT Solutions (Florida), and The Computing Edge (Oklahoma). These three acquisitions were part of a buying spree that began in 2022 when the company acquired 13 businesses.
The 20 continues to pursue an aggressive M&A strategy and plans to continue its acquisition momentum throughout 2024. The company has a full pipeline of acquisition candidates, all of which belong to The 20 MSP Group. Conkle explained that acquiring MSPs exclusively from the group enables a powerful M&A strategy that builds on preexisting synergies and relationships.
