The Deal
The 20 MSP acquired The Computing Edge, an Oklahoma-based managed services provider, in April 2024 as part of a three-company acquisition announcement. This transaction marked another step in The 20 MSP's aggressive consolidation strategy, bringing their total acquisition count to 19 deals completed in under a year.
The deal was announced alongside two other acquisitions - Uni Computers and CyberSecure IT Solutions - demonstrating The 20 MSP's ability to execute multiple transactions simultaneously. Financial terms for The Computing Edge acquisition were not disclosed, consistent with the buyer's pattern of keeping deal specifics private while focusing on execution velocity.
The Computing Edge joins The 20 MSP's growing platform of managed service providers as the PE-backed buyer continues building scale across multiple geographic markets. The Oklahoma-based target expands The 20 MSP's presence in the Southwest region.
Strategic Logic
This acquisition fits squarely within The 20 MSP's rapid consolidation playbook in the fragmented MSP market. The buyer is executing a classic roll-up strategy, acquiring smaller MSPs to build scale, eliminate redundancies, and create a more competitive platform against larger national players.
The Computing Edge acquisition provides several strategic benefits:
- Geographic expansion: Establishes or strengthens presence in the Oklahoma market
- Operational leverage: Adds revenue base to spread fixed costs across a larger platform
- Cross-selling opportunities: Expands service offerings to existing client relationships
- Talent acquisition: Brings experienced technical staff and client relationships
The simultaneous closing of three deals demonstrates The 20 MSP's operational sophistication and access to capital. Most MSP buyers struggle to execute one deal at a time, but this platform has built the infrastructure to handle multiple transactions concurrently. This execution capability becomes a competitive advantage in winning deals against other buyers who may require longer closing timelines.
Valuation Context
While deal terms remain undisclosed, this transaction occurs during a period of continued strong valuations for quality MSPs. The current market typically sees profitable MSPs trading between 3-8x EBITDA, with premium multiples reserved for businesses showing strong recurring revenue growth and specialized service capabilities.
The 20 MSP's ability to complete 19 acquisitions in under a year suggests they are paying competitive but disciplined prices. Buyers executing at this velocity typically have established valuation frameworks and move quickly on deals that fit their criteria, rather than engaging in extended bidding processes that drive up prices.
The undisclosed nature of deal terms is common in the MSP sector, particularly for smaller transactions. However, the rapid pace of acquisitions indicates The 20 MSP has secured adequate funding to continue their rollup strategy without being constrained by individual deal economics.
What MSP Owners Should Know
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Speed of execution matters in today's market: The 20 MSP's ability to close multiple deals simultaneously demonstrates that well-funded buyers can move quickly. MSP owners considering a sale should be prepared for accelerated timelines and have their financial documentation ready.
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Roll-up buyers prioritize operational fit over premium pricing: Platforms like The 20 MSP are building for scale and synergies rather than paying top dollar for individual assets. Sellers should understand that PE-backed platforms may offer competitive but not necessarily premium valuations in exchange for certainty and speed of closing.
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Geographic diversification creates value for buyers: The Computing Edge acquisition shows how buyers are expanding across multiple states to reduce market concentration risk. MSPs in secondary markets may find increased buyer interest as platforms seek geographic diversification.
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Multiple deal announcements signal strong market conditions: When buyers are confident enough to announce multiple acquisitions simultaneously, it indicates robust market conditions and available capital. MSP owners should view this as a positive signal for potential exit opportunities in the current environment.