New Charter Technologies Partners With CTSI To Expand Southwest Footprint

‘They're not in it for the fixer uppers. They're looking for well-run companies that can continue to grow,’ says Andrew Fleming, CTSI president.

New Charter Technologies has partnered with Computer Transition Services Inc. (CTSI) to expand IT services in western Texas and eastern New Mexico.

Lubbock, Texas-based CTSI brings to the partnership about 60 employees and almost 40 years of support and service experience with a deep understanding of the region’s unique business landscape. Terms of the deal were not disclosed.

“We liked the model for New Charter because it allows us to keep our company name, same tax ID, our culture and all our people,” Andrew Fleming, CTSI president, told CRN. “They're not in it for the fixer uppers. They're looking for well-run companies that can continue to grow.”

There were a few different services CTSI has wanted to offer to clients but didn’t have the manpower to do. Now under New Charter, that’s an option along with centralized services such as marketing and recruiting.

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Instead of an outright acquisition, Denver-based New Charter partners with companies that allows them to become a shareholder in New Charter. The company currently has partnerships with 24 companies and looks to bring on six to 10 companies a year.

“We think that brings a whole different level of focus on the business and a whole different level of energy towards achieving more and growing the business,” Mitch Morgan, CEO of New Charter, told CRN.

He said New Charter’s goal is not to change how the partnered company interacts with its clients but rather augment that with additional services, allowing the business owner to still develop best practices and improve their own business.

“Andrew is my partner financially and is part of the leadership team that drives the direction of the business,” Morgan said. “We really want good partners and good people that run good businesses. We want high-quality businesses that are best in class, know how to grow and know how to make money.”

As a partner and a shareholder, Fleming said he feels comfortable enough to question practices inside New Charter as well as provide insight.

“Everybody's very open and upfront…and that is very much appreciated,” he said.

Morgan said that CTSI has deep relationships and a depth of expertise with regard to implementing complex technology, “and they also have developed a really nice practice in several different vertical markets that we can learn from.”

Together, the partnership will further help clients with digital transformation, enhancing Microsoft modern work tools and AI and RPA (robotic process automation) enabled service delivery.

“We're on a mission right now to fully deploy AI-enabled services that will allow us to have a deeper level of automation, which will improve our service to our clients, but will allow us to be more efficient in our own right,” Morgan said.