Mergers and Acquisitions

The 20 MSP Completes Latest Acquisition Hat Trick

Managed IT services provider The 20 MSP has acquired three new MSPs: Tech Junkies MSP, Matrix Solutions, and Level 10 Technology. Financial information was not disclosed for any of the deals.

This latest expansion furthers The 20 MSP's aggressive acquisition strategy that began in 2022 and marks a significant increase in The 20's national footprint across the United States. In each case, The 20 maintained both leadership and employees from the acquired companies, which minimizes operational disruptions.

Expansion Details

These are technology M&A deal numbers 114, 115, and 116 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 177 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.

Tech Junkies MSP, founded in 2007, is based in Hays, Kansas. The company has 13 employees listed on LinkedIn. Tech Junkies MSP’s areas of expertise include managed IT solutions, business continuity planning, cloud services, and IT consulting.

Matrix Solutions is a technology consulting company founded in approximately 1992 and based in Mississippi.

Level 10 Technology, founded in 1996, is based in Clarksville, Tennessee. The company has 13 employees listed on LinkedIn. Level 10 Technology’s areas of expertise include managed services, IT infrastructure, network security, business continuity, cloud services, IT consulting, cyber threat security, co-managed IT, Mac and PC support, ransomware protection, VoIP, and strategy planning.

Strategic Vision and Future Prospects

The 20’s consolidation strategy allows them to build on pre-existing synergies like shared tools and processes. 

MSPs will join “the group” in order to take advantage of the talent pool of other group members. Once they hit certain milestones and prove themself a cultural fit, they are eligible to be acquired by the 20. This allows the 20 to circumnavigate many of the bottlenecks of the normal due diligence process associated with M&A and move quickly to buy and onboard companies.

"While we are acquiring MSPs rapidly, our process is thorough, prioritizing alignment with our acquisition targets, which is crucial for building a national MSP with uniformly excellent service," said Tim Conkle, founder and CEO.

This strategy emphasizes operational unity and maintaining a consistent company culture and strategic vision across all acquisitions.

"Some MSP owners want to sell but remain relatively independent. However, our model focuses on full integration to ensure we are all aligned on key processes and culture," Conkle added.

The 20 MSP also offers MSP owners the chance to reinvest in the conglomerate, providing opportunities for further growth and profit.

Past acquisitions have included Drivetech, Accurate Computer Solutions (ACS), and Blue Cactus Consulting in March 2024; 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). 

Financial and Strategic Advisors

Pinecrest Capital Partners acted as the exclusive financial advisor to The 20 MSP for these transactions. Funding for the acquisitions was provided by Texas-based Sunflower Bank, which served as the sole lead arranger in a syndicated credit facility.

The 20’s Acquisition Hat Trick: Executive Commentary

Conkle commented:

"We have a large pool of MSPs interested in selling to The 20 – companies that belong to our membership-based growth platform, The 20 MSP Group, as well as MSPs that caught wind of our unique M&A approach and want in on the action."