Key Takeaways

  • IT Solutions (ITS) has acquired Fort Washington-based CHS Systems, Inc. to consolidate its presence in the Greater Philadelphia region.
  • The transaction integrates CHS’s 25 years of network security and cloud expertise into ITS’s employee-owned operational model.
  • Current CHS clients will gain access to ITS’s broader service portfolio, including vCIO support and 24/7 help desk capabilities.

Consolidation in the managed services sector often follows a predictable script: a large private equity-backed platform sweeps up smaller regional players to aggregate revenue. But the announcement that IT Solutions (ITS) has acquired CHS Systems, Inc. suggests a different kind of growth strategy—one focused on geographic density and service continuity rather than just balance sheet expansion.

ITS, a managed service provider (MSP) serving businesses across North America, confirmed the acquisition of CHS, a long-standing provider based in Fort Washington, Pennsylvania. The deal brings together two established players in the Greater Philadelphia market, reinforcing ITS’s footprint in the Mid-Atlantic while adding specialized technical resources to its bench.

For ITS, which operates as a 100% employee-owned company (ESOP), the move is less about conquering new territory and more about deepening its roots where it already operates. CHS Systems—previously a Quintile Company—has spent over 25 years building a reputation for network security, cloud computing, and reliable IT support. By absorbing that experience, ITS isn't just buying a client list; it’s acquiring institutional knowledge that dates back to the early days of managed services.

It’s a small detail, but it tells you a lot about how the rollout is unfolding: both companies share a backyard. With CHS also located in Fort Washington, this integration avoids the logistical friction that often plagues cross-country acquisitions. There are no time zones to manage or radical cultural disconnects to bridge. Instead, the focus shifts immediately to operational alignment.

The Operational Logic

The acquisition fits squarely into ITS’s broader strategy of controlled expansion. For the clients coming over from CHS, the immediate impact will be a widened scope of services. While CHS focused heavily on network infrastructure and security, joining the ITS fold opens the door to more structured strategic offerings.

Specifically, ITS is known for its vCIO (Virtual Chief Information Officer) service, a role that moves the MSP relationship from strictly "break/fix" support to long-term technology planning. For a mid-sized business, having access to a vCIO means having someone who can look at the roadmap for the next three years, not just the ticket queue for the next three hours.

Ted Swanson, CEO of IT Solutions, framed the acquisition as a value-add for both client bases. The integration allows the combined entity to standardize best practices across a larger network while maintaining the local, high-touch feel that clients in the Philadelphia area expect.

And yet, scaling a service organization is rarely simple. Merging help desks, unifying ticketing systems, and aligning security stacks usually creates short-term noise. However, ITS’s structure as an ESOP may provide a stabilizing factor here. Because the employees are beneficial owners of the company, the incentive structure is different than in a standard corporate buyout. The engineers and support staff on the receiving end of the integration have a vested interest in retention—both of clients and of the new colleagues joining from CHS.

Strengthening the Technical Stack

The technical overlap between the two firms appears significant. CHS brings a quarter-century of experience in cloud computing and network security, two areas that remain top priorities for B2B organizations facing an increasingly hostile threat landscape. By folding these capabilities into the ITS delivery model, the unified team can offer a more robust defense-in-depth strategy.

What does that mean for teams already struggling with integration debt? Ideally, it means faster resolution times and more proactive monitoring. As MSPs scale, the challenge is often maintaining the "personal" aspect of support while leveraging enterprise-grade tools. ITS has historically emphasized a client-centric approach, and adding seasoned engineers from CHS helps maintain that ratio of talent to tickets.

Regional Density Strategy

The decision to acquire a neighbor highlights a specific philosophy in the MSP market: density matters. While remote management allows an MSP to support a client anywhere, physical proximity still carries weight, particularly for complex on-site implementations or emergency response. By doubling down on the Greater Philadelphia area, ITS is signaling that despite its North American reach, it views its home market as a critical stronghold.

This creates a distinct advantage over national competitors who might have a sales rep in the region but lack a deep bench of local engineers. The combined resources of ITS and CHS create a center of gravity in Fort Washington that is hard for disjointed, national competitors to replicate.

Looking Ahead

The transaction also marks an exit for CHS from the Quintile portfolio. For the staff and clients of CHS, moving from a portfolio holding to a dedicated, employee-owned technology firm likely signals a shift in culture—from one of investment management to one of operator-led growth.

The integration process will involve standardizing toolsets and ensuring that CHS clients transition smoothly to ITS support channels. However, the shared geography and complementary service focus suggest a cleaner path to unification than most M&A deals in this sector.

In a market where many MSPs are racing to become generic national providers, IT Solutions seems intent on building a regional stronghold in the Mid-Atlantic. The acquisition of CHS Systems doesn't just make them bigger; it reinforces the technical foundation required to serve a business community that increasingly demands enterprise-level IT outcomes from local partners.