The Deal
New Charter Technologies, the Oval Partners-backed MSP platform, acquired Verus, a Minnesota-based managed service provider, in January 2025. The transaction marks New Charter's continued expansion through its roll-up strategy, adding another regional MSP to its growing portfolio of IT service providers.
Verus operates as a traditional MSP serving businesses across the Midwest region with standard managed IT services. The company represents New Charter's entry into the Minnesota market and strengthens the platform's geographic coverage in the central United States. Deal terms, including purchase price and valuation metrics, were not disclosed by either party.
The acquisition follows New Charter's established playbook of acquiring regional MSPs and integrating them into a unified service delivery model. According to company statements, New Charter's management indicated their M&A pipeline remains robust with additional transactions planned throughout 2025.
Strategic Logic
This acquisition fits squarely within New Charter's geographic expansion strategy. The Midwest represents a fragmented market with numerous mid-sized MSPs serving local business communities - exactly the type of targets that PE-backed platforms seek for consolidation plays. Verus provides New Charter with an established client base and local market presence in Minnesota, eliminating the need to build operations from scratch in the region.
The deal also supports New Charter's scale-building objectives across several dimensions:
- Geographic diversification: Reduces concentration risk by spreading operations across multiple regional markets
- Client base expansion: Adds Verus's existing customer relationships and recurring revenue streams
- Technical capabilities: Incorporates Verus's service delivery expertise and potentially specialized technical skills
- Operational leverage: Creates opportunities to implement standardized processes and realize cost synergies
For Oval Partners, the transaction continues the fund's thesis around MSP consolidation. PE sponsors typically target 3-5x revenue growth through acquisition-driven platforms, requiring steady deal flow to hit return targets. Verus represents another building block in that growth strategy.
Valuation Context
Without disclosed deal terms, this transaction provides limited direct valuation insight. However, the deal structure and timing offer several market indicators worth noting. PE-backed MSP platforms continue acquiring targets despite elevated interest rates and tighter credit markets, suggesting sponsors remain confident in the sector's fundamentals.
The Midwest MSP market has seen consistent M&A activity over the past 18 months, with regional providers typically commanding 4-8x EBITDA multiples depending on size, growth rates, and service mix. Smaller MSPs with sub-$5M revenue often trade toward the lower end of that range, while larger, faster-growing providers can achieve premium valuations.
New Charter's willingness to complete this acquisition indicates the platform likely secured attractive deal terms. Later-stage add-on acquisitions for PE platforms often occur at lower multiples than initial platform purchases, as buyers gain negotiating leverage and operational expertise. The undisclosed nature of the transaction suggests terms may have been particularly favorable to the buyer.
What MSP Owners Should Know
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PE platforms remain active acquirers despite market conditions Platform companies backed by private equity continue executing roll-up strategies even as broader M&A markets face headwinds. This creates ongoing exit opportunities for MSP owners, particularly those in markets where platforms seek geographic expansion.
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Regional market presence drives acquisition interest Verus's value proposition centered on its established Midwest market position rather than unique technical capabilities or exceptional growth metrics. MSP owners should recognize that geographic footprint and local client relationships represent significant strategic value to platform buyers.
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Undisclosed deal terms may signal competitive dynamics The lack of disclosed valuation metrics could indicate either unfavorable terms for the seller or competitive sensitivity around pricing. MSP owners considering exits should prepare for potential confidentiality requirements while ensuring they understand market-rate valuations for comparable transactions.
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Platform integration capabilities matter for deal completion New Charter's emphasis on unified service delivery models highlights the importance of operational integration in platform strategies. MSP owners evaluating platform buyers should assess integration track records and cultural fit, as post-acquisition success depends heavily on smooth operational transitions.