PE-Backed New Charter Acquires Adnet Technologies
This is technology M&A deal number 568 that ChannelE2E has covered so far in 2021. See all technology M&A deals for 2021 and 2020 listed here.
Adnet is located in the greater Hartford, Connecticut area and New York’s capital region. The company provides security, cloud, and managed IT services.
About New Charter
New Charter has now acquired and/or invested in more than 10 MSPs since 2020 — including Braver Technology, Olmec Systems, Greystone Technology and The Tech Group. New Charter’s four founding MSPs, as announced in September 2020, were:
- ActiveCo Technology Management of Vancouver, British Columbia.
- Apex Technology Management of Redding, California.
- DCG Technical Solutions of Los Angeles, California.
- PennComp Outsourced IT of Houston, Texas.
The addition of Adnet will bring the company’s total headcount to 450, the company’s CEO confirmed with ChannelE2E.
Despite the many M&A deals, none of them fit into the traditional “sell and exit” strategy for the MSP owners. Instead, Oval Partners is investing in the companies and helping them scale, keeping the previous owners on hand to run and expand the company using lessons gleaned from the other businesses.
Financial backer Oval Partners “focuses on making investments in the Business and Tech Enabled Services, Information Services, Internet, Software/SAAS and Industrial Technology markets,” according to its website. Unlike most private equity firms, Oval’s capital base is permanent—which means the firm isn’t constrained to a specific holding/ownership period.
New Charter Acquires Adnet: “An Equity Partnership”
Mitch Morgan, CEO, New Charter Technologies, commented:
“We’re building a national MSP platform in an entirely new and different way. We call it an Equity Partnership. We take a culture-focused approach and partner with companies that share our mission to improve people’s lives with technology solutions.”
Christopher Luise, the CEO of Adnet Technologies, said:
“Our employees are the reason for our company’s consistent success, so we were only willing to work with an investment partner that would help us create new opportunities for our team and support our work to build a company culture that retains, attracts, and empowers top talent.”