This is technology M&A deal number 219 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.
The 20 MSP, founded in 2013, is based in Plano, Texas. The company has 147 employees listed on LinkedIn. The 20’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.
Inerva Technology Advisors, founded in 2015, is based in Saint Louis, Missouri. The company has seven employees listed on LinkedIn. Inverva’s areas of expertise include Managed IT Services, HIPAA Compliance, HIPAA Training, HIPAA Risk Assessments, Business Continuity, Business Disaster Recovery as a Service, Project Management, EMR Support, Computer Support and Security, Network Support and Security, Regulatory Compliance, Cybersecurity, and VOIP.
This is The 20 MSP’s twenty-third deal since it was formed and its tenth of 2023. The 20 says it plans to sustain its M&A momentum in the coming months as it looks to strengthen its national footprint and deepen its presence in several key markets.
The 20 Acquires Inerva: Acquiring From Within
Like many of its previous acquisitions, Inerva was a member of The 20 MSP Group, a business development co-op dedicated to fostering growth among MSPs looking for help with scalability, sales, and service delivery.
Tim Conkle, CEO and founder, The 20 MSP, commented:
“We’re exclusively acquiring MSPs within the group. This makes things a breeze from an integration perspective, and minimally disruptive to end clients. It also ensures the sort of cultural compatibility that can often prove elusive in these sorts of deals. We get onto the same page as the companies we’re acquiring long before any deals are brought to the table, and I think that’s been crucial to our success.”
“Adding Inerva to the team gives us a huge boost in terms of resources and expertise, especially in the healthcare industry. We’re getting bigger because we want to get better, and this latest move will help us do exactly that. I’m excited on our clients’ behalf for the improvements coming their way.”
The 20’s Aggressive M&A Play
The 20 labels itself as an “exclusive consortium for managed service providers (MSP) aimed at dominating and revolutionizing the IT industry with its standardized all-in-one approach.”
The company has made nearly two dozen acquisitions in the last two years, including 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 2023. 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.
“We’re thrilled by how far we’ve come and how successful this roll-up has been so far,” said Conkle. “But there’s more work to be done, and our passion and commitment are as strong as ever.”
Pinecrest Capital Partners served as the exclusive financial advisor to The 20 MSP on the acquisition and associated financing.