The Deal
New Charter Technologies completed its acquisition of Dynamic Edge in August 2024, marking another step in the PE-backed platform's aggressive MSP consolidation strategy. The transaction brings Dynamic Edge's Michigan-based operations under the Oval Partners portfolio company umbrella, expanding New Charter's geographic footprint into a new Midwest market.
Dynamic Edge operates as a traditional managed service provider, delivering IT support and technology solutions to businesses throughout Michigan. The company represents New Charter's continued focus on acquiring established regional MSPs with solid client bases and operational foundations that can benefit from platform-level resources and standardization.
Financial terms of the transaction were not disclosed, consistent with many smaller MSP acquisitions where buyers prefer to keep valuation metrics private. The deal was announced through industry publications and represents New Charter's ongoing execution of its buy-and-build strategy under Oval Partners' ownership.
Strategic Logic
This acquisition fits squarely within New Charter's geographic expansion playbook. Michigan represents an untapped market for the platform, providing immediate access to an established client base and local market knowledge that would take years to develop organically. The state's diverse business landscape, from manufacturing to professional services, offers multiple vertical expansion opportunities for New Charter's service portfolio.
The deal also demonstrates the classic PE rollup thesis in action. Key strategic fit factors include:
- Geographic diversification: Michigan adds a new state to New Charter's coverage area
- Market density: Access to Detroit metro area and surrounding business markets
- Operational leverage: Dynamic Edge can immediately benefit from New Charter's standardized processes and vendor relationships
- Cross-selling potential: Existing New Charter service capabilities can be introduced to Dynamic Edge's client base
For Oval Partners, this transaction continues building scale within the fragmented MSP market. Each acquisition adds recurring revenue streams while creating opportunities to drive margin improvement through operational efficiencies and procurement advantages.
Valuation Context
While deal terms remain undisclosed, this transaction occurs during a period of sustained MSP M&A activity driven by strong fundamentals in the managed services sector. PE-backed platforms continue to pay competitive multiples for quality MSPs with predictable recurring revenue models and growth potential.
Regional MSPs like Dynamic Edge typically command valuation multiples ranging from 4-8x EBITDA, with premiums paid for companies demonstrating consistent growth, strong client retention, and diversified service offerings. Platform buyers often justify higher multiples through anticipated synergies and the strategic value of geographic expansion.
The Michigan market timing appears favorable for New Charter, as the state's economic recovery and business investment trends create demand for managed IT services. This regional dynamic likely supported the acquisition rationale and may have influenced valuation discussions, though specific financial metrics remain confidential.
What MSP Owners Should Know
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Geographic expansion drives platform acquisitions: PE-backed buyers actively seek MSPs in new markets to build regional density. If you operate in a market without significant platform presence, you may command premium interest from strategic acquirers looking to establish footholds.
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Operational readiness matters for platform deals: New Charter's acquisition pattern suggests they target MSPs with established operations that can quickly integrate into standardized processes. Having documented procedures, consistent service delivery, and clean financials positions your business as an attractive platform add-on.
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Market timing creates opportunities: This deal demonstrates how regional economic conditions influence buyer interest. Understanding your local market dynamics and business growth trends helps position your MSP for maximum valuation when engaging with potential acquirers.
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Platform buyers offer different value propositions: Unlike strategic acquirers focused on technology integration, PE platforms like New Charter provide operational resources, procurement advantages, and growth capital. Evaluating which buyer type aligns with your business goals and client needs becomes critical during exit planning discussions.