The 20 MSP Adds 2 More Companies, Part of Multiyear Growth Plan

The 20 MSP on Thursday welcomed two more MSPs into its fold. These deals are in addition to 11 other rollups by The 20 in 2022, and are the latest moves in an ongoing, multiyear growth plan.

Joining The 20 are CSP Technologies and Code Red Networks. As members of The 20 MSP Group, CSP Technologies and Code Red Networks achieved consistent and impressive growth. Both companies have developed into major regional players with a history of client success. Like the 11 companies before them, these latest shops are aligning their businesses with The 20 in order to grow together.

The 20’s Tim Conkle

“As members of our group, Chris [Plouffe, CSP CEO] and Dennis [Ward Jr., Code Red president] have built really special organizations with incredible cultures,” said Tim Conkle, CEO of The 20. “They do all the little things right, and never lose sight of the true role of an MSP – helping your clients succeed. It’s that client-first mentality and commitment to excellence that has allowed both of these businesses to stand out in our crowded industry and grow. It’s a huge part of the immense value they’re bringing to The 20.”

The 20’s exclusive financial advisor on its acquisitions is Pinecrest Capital Partners, a private equity firm. It’s important to note that The 20 is not relying on private equity funding, in contrast to some of the other large platform MSPs involved in typical M&A deals.

The 20 MSP Group

Another notable aspect of The 20’s consolidation strategy is the role of The 20 MSP Group. 

“The MSPs we’re acquiring all belong to The 20 MSP Group, which means we’ve been working with them for months – sometimes years – on a daily basis,” Conkle said. “There is already a real relationship in place, and a deep compatibility that’s hard to build on the fly.”

According to Conkle, this has been the plan now for about eight years. 

“The plan was to build the group, get everybody in the same tool set, and get everybody standardizing toward a single way of doing business,” Conkle told Channel Futures. “Essentially, the idea is that they sell the same way and contract the same way. So ultimately, what you’re doing is you’re pulling together all of these MSPs that look like you, their culture aligns, etc. And then comes the time to do the roll up, at which point 80% of due diligence and integration is already done.”

Looking Ahead

With more than 170 MSP members, The 20 MSP Group funnels MSPs right into The 20’s acquisition pipeline. Conkle’s plan for 2023 is to “fold in” two to four MSPs a month.

“After doing thirteen of these deals, we’ve settled into a rhythm that works. The integrations are smooth and [mostly] painless, and end clients don’t have to adjust to a whole new model of IT support. As for the owners of the MSPs we’re acquiring, we place them in roles that allow them to shine. It’s about coming together and getting stronger – something we’ve believed in at The 20 from the very beginning.”