Dive Brief:
- New Charter Technologies added Netsource One to its network of regional IT service providers in mid January. The acquisition expands New Charter’s presence in Michigan and is the 32nd firm the company has onboarded to the platform since its 2020 launch. .
- The move bolsters New Charter’s security profile with NetSource’s SOC 2 Type II and HIPAA compliance capabilities. NetSource has experience securing complex and highly regulated verticals.
- NetSource joins an MSP aggregator designed to keep owners in place and draw from a provider’s localized strengths. “They didn’t join New Charter to give that up,” New Charter CEO Peter Melby said in the announcement. “They joined to build on it.”
Dive Insight:
New Charter’s latest deal shows how compliance has grown from nice-to-have into a need-to-have in the MSP market.
“It absolutely is becoming a specific request and requirement, whereas before [it was] just a general desire,” Melby told Channel Dive.
Compliance chops reflect NetSource’s broader organizational strength.
“From an operational maturity to maturity with their security services and compliance and the way that they've been able to build that into scale,” he said. “They matter in their market so much, and our model allows them to continue to do that, and actually needs them to continue to do that.”
Some MSP roll-ups, such as Thrive, are banking on a full integration of acquisitions. New Charter has prioritized founder involvement.
“While we continue to build the platform together, we do it with an eye for how existing leaders can continue the loyalty in their markets and continue to drive growth in their markets,” Melby said. “We can't afford to have subpar leadership.”
Platform operators are learning lessons together as they push the industry into unknown territory, according to Melby.
“We're definitely seeing the largest MSPs we've seen, and we're seeing the difference between what's a homogenized business versus a platform business versus a holding company,” he said. “Some of the scale has benefits. Some of the scale doesn't, and that's really what we're all exploring.”
Shortly after the NetSource acquisition, New Charter announced the hiring of CRO Michelle Curtis Jan. 29. Curtis brings a wealth of experience in software and resale, having most recently led distribution for Microsoft and previously having worked at Presidio and Tech Data.
She’ll work to create a unified approach to customers, taking into account managed services, consulting and technology sales.
“Small and mid-sized businesses are navigating a level of complexity they’ve never faced before,” Curtis said in the announcement. “New Charter has the scale, expertise, and talent to support them in a way that’s both personal and forward-looking. My goal is to help tell that story clearly, build a world-class revenue organization around it, and ensure our clients feel confident, supported, and excited about what’s possible.”
