Private Equity Investing in Managed IT Companies

Recently, I’ve noticed an increase in the number of managed IT companies for sale. It strikes me that this is a very fragmented industry that might be ripe for a roll-up strategy.

Based on recent transactions from our database of private equity portfolio companies, the following private equity firms are currently investing in the managed IT space:

Private Equity Firms Investing in Managed Information Technology Companies

June 2018 – H.I.G. Capital completed a significant investment in Eze Castle Integration, Inc. (Boston, MA)

Eze Castle Integration is a provider of managed it services and cloud solutions to financial services firms. The company provides outsourced cloud IT infrastructure, cybersecurity, communications, and business protection.

May 2018 – Spire Capital Partners (Fund III) invested in Dynamic Quest. (Greensboro, NC)

Dynamic Quest is a managed service provider for IT services to enterprises and mid-sized businesses. The Company’s services include hosted cloud services, disaster recovery, managed it, software maintenance, application support, virtual CIO and security services.

May 2018 – Vista Foundation Fund III acquired LogicMonitor. (Santa Barbara, CA)

LogicMonitor is a SaaS-based performance monitoring platform for enterprise IT, managed service providers (MSPs), and small and mid-sized businesses, enabling organizations of all sizes to monitor their entire IT infrastructure from a single application.

May 2018 – Evergreen Services, a family of business services companies backed by Alpine Investors, invested in Interlaced.

Interlaced is a team of consultants, engineers, and strategists, and is one of only a few sophisticated Apple-centric IT providers in the world.

April 2018 – Evergreen Services, a family of business services companies backed by Alpine Investors, invested in JENLOR Integrations. (Pittsburgh, PA)

JENLOR Integrations, LLC is a provider of IT services to small and mid-sized businesses in the greater Pittsburgh area.

January 2018 – Evergreen Services, a family of business services companies backed by Alpine Investors, made an investment in Wolf Consulting LLC. (Monroeville, PA)

Wolf Consulting, LLC is a provider of managed it services to small and mid-sized businesses.

January 2018 – Evergreen Services, a family of business services companies backed by Alpine Investors, made an investment in Executech. (South Jordan, UT)

Executech is an outsourced IT services provider. The company provides enterprise-quality IT to small and medium-sized organizations across the Intermountain West.

December 2017 – Renovus Capital Partners acquired a controlling interest in Lockstep Technology Group. (Duluth, GA)

Lockstep provides end-to-end technological services. The Company specializes in managed it services, cloud solutions, IT risk management and security, and strategic IT consulting.

July 2017 – WestView Capital Partners made a minority growth investment in Abacus Group LLC. (San Francisco, CA)

Abacus Group LLC is a provider of managed it solutions focused on helping hedge funds, private equity funds and other financial institutions deploy and manage their IT.

June 2017 – Thoma Bravo acquired Continuum (Boston, MA) from Summit Partners.

Continuum Managed Services is a SaaS-based global IT management platform for managed it Service Providers (MSPs).

May 2017 – Wincove Private Holdings, LP led the recapitalization of Comstar Technologies, LLC. (West Chester, PA)

Comstar Technologies, LLC is a full-service provider of technology and telecommunications services to corporate and institutional customers. The Company’s services include cloud-based VOIP (voice-over internet protocol) phone systems, the installation and maintenance of traditional phone systems, managed it services, network infrastructure and cabling, and the integration of security, fire and A/V systems.