The Deal
CNE announced its acquisition of FARR Technologies on May 13, 2026, marking another strategic consolidation play in the Midwest managed services market. The transaction brings together CNE's managed services and IT infrastructure capabilities with FARR's converged service portfolio spanning broadband, wireless, and cybersecurity solutions.
FARR Technologies operates as a converged service provider, delivering connectivity and security services to business and organizational clients. CNE positions itself as a technology solutions provider focused on managed services and IT infrastructure, making this acquisition a natural extension of its service portfolio. Deal terms remain undisclosed, consistent with many mid-market MSP transactions where buyers prefer to keep valuation metrics private.
The acquisition represents CNE's strategic push to expand both its service delivery capacity and technical capabilities in high-growth areas like cybersecurity and wireless solutions. This transaction follows the broader industry trend of traditional MSPs acquiring converged providers to offer more comprehensive technology stacks to their client base.
Strategic Logic
This acquisition delivers clear strategic value for CNE across multiple dimensions. The combination expands CNE's managed services capacity while adding specialized capabilities in broadband infrastructure and wireless solutions that complement its existing IT services portfolio. FARR's cybersecurity expertise particularly strengthens CNE's security service offerings, a critical growth area for MSPs competing for enterprise clients.
Key strategic fit factors include:
- Service portfolio expansion into high-margin cybersecurity and connectivity services
- Enhanced technical capabilities in wireless and broadband infrastructure
- Increased overall capacity to serve larger enterprise clients requiring converged solutions
- Geographic market strengthening in the South Dakota region
The deal also positions CNE to compete more effectively for clients seeking single-vendor solutions across IT infrastructure, connectivity, and security. Converged service providers like FARR often maintain deeper technical expertise in networking and telecommunications, capabilities that pure-play MSPs frequently lack. This technical depth becomes increasingly valuable as clients demand more sophisticated hybrid cloud and edge computing solutions.
Valuation Context
While deal terms remain undisclosed, this transaction reflects continued strong buyer interest in converged service providers that combine traditional MSP capabilities with telecommunications and cybersecurity expertise. Converged providers typically command valuation premiums over pure-play MSPs due to their diversified revenue streams and specialized technical capabilities.
The cybersecurity component of FARR's business likely contributed to valuation upside, as MSSPs continue to trade at premium multiples compared to traditional managed services providers. Current market conditions show cybersecurity-focused providers achieving EBITDA multiples in the 8-12x range, while traditional MSPs typically see 5-8x multiples depending on growth rates and client concentration.
Strategic buyers like CNE often pay premium valuations for targets that deliver immediate capability expansion and cross-selling opportunities. The combination of broadband, wireless, and cybersecurity services creates multiple revenue expansion vectors that can justify higher acquisition multiples. Geographic market consolidation also drives strategic premiums, particularly in markets like South Dakota where quality acquisition targets remain limited.
What MSP Owners Should Know
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Converged capabilities drive premium valuations. MSPs offering specialized services beyond traditional help desk and infrastructure management continue to attract strategic buyers willing to pay higher multiples. Building expertise in cybersecurity, networking, or telecommunications creates differentiation that translates to valuation upside.
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Strategic buyers prioritize capability acquisition over pure scale. CNE's acquisition of FARR demonstrates how strategic acquirers focus on adding technical capabilities and service offerings rather than simply buying revenue. MSP owners should consider which specialized capabilities their businesses offer that strategic buyers cannot easily replicate internally.
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Geographic market consolidation creates opportunities. This transaction highlights continued consolidation in regional markets where larger MSPs acquire smaller providers to strengthen local market position. MSP owners in similar markets should expect continued buyer interest, particularly from regional players seeking to expand their service footprints.
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Undisclosed deal terms remain common in mid-market. The lack of disclosed valuation metrics reflects standard practice in middle-market MSP transactions. Owners preparing for exit should focus on building relationships with buyers and advisors who understand private market valuations rather than relying on public market comparables.