New Charter Technologies, backed by Palo Alto-based private equity firm Oval Partners, has expanded its portfolio by acquiring Computer Transition Services Inc. (CTSI), a leading managed IT provider based in Lubbock, Texas. Financial details of the transaction were not provided.
This is technology M&A deal number 19 that ChannelE2E and MSSP Alert have covered so far in 2023. See more than 2,000 technology M&A deals for 2023, 2022, 2021, and 2020 listed here.
New Charter Technologies, founded in 2018, is headquartered in Palo Alto, California. The company has 37 employees listed on LinkedIn. New Charter’s areas of expertise include IT Support, Managed IT Services, IT Consulting, Cloud Computing, Cybersecurity, and IT Outsourcing.
Computer Transition Services Inc., founded in 1988, is based in Lubbock, Texas. The company has eight employees listed on LinkedIn. CTSI’s areas of expertise include consulting, design, procurement, deployment, and support.
About the Companies
This acquisition will open up New Charter Technologies' to the West Texas and Eastern New Mexico markets.
CTSI is a security-focused Managed Services Provider that provides various services including managed IT services, cybersecurity services, HIPAA compliance support, and more, catering to businesses in West Texas and Eastern New Mexico.
Oval Partners and New Charter operate an equity partnership model. The acquired companies’ existing leadership stays on to run and expand the organizations.
New Charter is an investment partnership that has “acquired” a portfolio of 22 (and growing) companies operating in 28 cities since 2020 – including Complete Technology Solutions (CTS), Braver Technology, Olmec Systems, Greystone Technology, The Tech Group, Adnet, and Strategic Solutions.
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.
Despite the many M&A deals, none of them fit into the traditional “sell and exit” strategy for the MSP owners, as ChannelE2E has reported. Instead, Oval Partners invests in the companies and helps them scale, keeping the previous owners on hand to run and expand the company using lessons gleaned from their other businesses.
Strategic Alignment and Expansion
Andrew Fleming, president, CTSI, commented:
"New Charter Technologies has a reputation for attracting mature, well-run businesses, making this acquisition a strategic move for CTSI. The acquisition's focus is on enhancing value for our clients and tapping into shared resources for a stronger market presence."
Mitch Morgan, CEO, New Charter Technologies, said:
"Our acquisition model respects each partner's strengths, allowing them to thrive within our larger framework. The addition of CTSI is a valuable step, set to significantly impact the industry."
