The 20 MSP Acquires CyberSecure IT Solutions: Aggressive Roll-Up Strategy

The Deal

The 20 MSP acquired CyberSecure IT Solutions in April 2024 as part of a three-company acquisition that also included Uni Computers and The Computing Edge. This transaction marked another milestone in The 20 MSP's aggressive expansion strategy, bringing their total acquisition count to 19 deals completed in under a year.

The 20 MSP operates as a private equity-backed platform focused on rapid growth through acquisitions across the managed services sector. CyberSecure IT Solutions, based in Florida, provided managed IT services with a focus on cybersecurity solutions for small and medium-sized businesses in the Southeast region.

Deal terms were not disclosed, consistent with The 20 MSP's approach to most of their acquisitions. The transaction represents part of a broader roll-up strategy designed to create a scaled managed services platform through geographic expansion and service capability enhancement.

Strategic Logic

This acquisition fits squarely within The 20 MSP's documented strategy of rapid market consolidation through multiple simultaneous acquisitions. The three-company deal structure demonstrates their ability to execute complex multi-target transactions while maintaining acquisition velocity.

CyberSecure IT Solutions brings several strategic advantages to The 20 MSP platform:

• Geographic expansion: Strengthens The 20 MSP's presence in the Florida market and broader Southeast region
• Cybersecurity capabilities: Adds specialized security expertise to complement core managed services offerings
• Client base diversification: Expands the platform's SMB customer portfolio across different industry verticals
• Operational scale: Contributes to economies of scale across technology procurement, vendor relationships, and back-office functions

The timing aligns with increased demand for cybersecurity services among SMBs, making CyberSecure IT Solutions' specialized capabilities particularly valuable. The acquisition also supports The 20 MSP's goal of building a comprehensive managed services platform that can serve clients across multiple geographic markets with enhanced service depth.

Valuation Context

While deal terms remain undisclosed, this transaction occurs during a period of continued strong valuations for MSPs with cybersecurity capabilities. Southeast regional MSPs with established client bases typically command multiples in the 3-6x EBITDA range, with cybersecurity-focused providers often achieving premiums within that range.

The three-company acquisition structure suggests The 20 MSP is prioritizing speed and market coverage over individual deal optimization. This approach often results in standardized deal terms across multiple targets, which can benefit sellers through reduced negotiation complexity and faster closing timelines.

Current market conditions continue to favor MSP sellers, particularly those with recurring revenue models and specialized capabilities like cybersecurity. Private equity-backed platforms like The 20 MSP face pressure to deploy capital quickly, which has maintained competitive tension in the acquisition market despite broader economic uncertainties.

What MSP Owners Should Know

1. Roll-up platforms prioritize speed over price optimization The 20 MSP's ability to complete 19 acquisitions in under a year demonstrates that well-capitalized platforms are willing to pay market rates for quality targets that fit their strategic criteria. MSP owners should expect streamlined due diligence processes and standardized deal structures when engaging with active roll-up buyers.

2. Cybersecurity capabilities command premium attention CyberSecure IT Solutions' focus on security services likely made it an attractive target in the current market environment. MSPs with documented cybersecurity expertise, certifications, and dedicated security revenue streams continue to generate strong buyer interest and valuation premiums.

3. Multi-company deals create unique opportunities Being part of a three-company acquisition can offer advantages including shared transaction costs, reduced individual seller risk, and potentially faster closing timelines. MSP owners should consider whether their business might fit well in a package deal scenario with complementary regional providers.

4. Geographic clustering drives acquisition strategy The 20 MSP's focus on building regional density through multiple Southeast acquisitions reflects a common platform strategy. MSP owners in markets where platforms are actively building presence may find themselves with multiple interested buyers and competitive acquisition processes.