The Deal
IT Solutions Consulting completed its acquisition of Steady Networks on June 10, 2024, marking a strategic expansion into the New Mexico managed IT services market. The transaction brings together two technology services companies focused on delivering managed IT solutions to business clients.
Steady Networks operates as a New Mexico-based information technology service provider, offering managed IT services to local businesses throughout the region. IT Solutions Consulting is an established technology services company that provides managed IT services and solutions across multiple markets. The deal terms, including purchase price and valuation multiples, were not disclosed publicly.
The acquisition represents IT Solutions Consulting's continued growth strategy through strategic acquisitions, allowing the company to establish a presence in New Mexico while adding an established client base and local market expertise.
Strategic Logic
This acquisition follows a classic geographic expansion playbook that has driven significant MSP consolidation activity. IT Solutions Consulting gains immediate market presence in New Mexico without the time and cost associated with organic market entry. The deal provides access to Steady Networks' established relationships with local businesses and deep understanding of regional market dynamics.
Key strategic fit factors include:
- Geographic expansion: Entry into New Mexico market with established local presence
- Client base acquisition: Access to Steady Networks' existing customer relationships
- Local expertise: Retention of regional market knowledge and client service capabilities
- Service enhancement: Strengthened managed IT services portfolio through combined capabilities
The transaction allows IT Solutions Consulting to leverage its existing infrastructure and service delivery capabilities across a broader geographic footprint. For regional MSPs like Steady Networks, partnering with larger platforms often provides access to enhanced technology resources, expanded service offerings, and greater operational scale.
Valuation Context
While deal terms remain undisclosed, this transaction reflects continued strategic buyer interest in regional MSPs with established client bases. The managed services sector has maintained strong valuation levels throughout 2024, with strategic acquirers particularly focused on targets that offer clear geographic expansion opportunities.
Regional MSPs typically command valuation multiples ranging from 3-8x EBITDA, with premiums paid for businesses demonstrating recurring revenue stability, diversified client bases, and strong local market positions. Geographic expansion deals often justify higher multiples when buyers can demonstrate clear synergy potential and market entry value.
The New Mexico market represents an attractive expansion opportunity for technology services companies, with growing demand for managed IT services among small and mid-sized businesses. Regional markets like New Mexico often provide MSPs with strong client relationships and reduced competitive pressure compared to major metropolitan areas.
What MSP Owners Should Know
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Geographic value matters: Regional MSPs with strong local market positions continue attracting strategic buyers seeking geographic expansion. Local market expertise and established client relationships in underserved markets command premium valuations.
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Strategic buyers drive activity: Technology services companies are actively acquiring regional MSPs to expand their footprint and service capabilities. These buyers often pay higher multiples than financial buyers for the right strategic fit.
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Market timing remains favorable: The managed services sector continues experiencing strong M&A activity, with buyers focused on recurring revenue models and established client bases. Regional MSPs with stable operations remain attractive acquisition targets.
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Scale advantages drive consolidation: Larger platforms can offer enhanced technology resources, expanded service portfolios, and operational efficiencies that smaller regional players struggle to match independently. This dynamic continues driving consolidation across the MSP sector.