Genstar Capital has completed the previously announced sale of its portfolio company ConvergeOne, an independent provider of communications solutions and managed services to enterprises globally, to Clearlake Capital. Genstar first invested in ConvergeOne in May 2007.
ConvergeOne is one of the largest providers of business communications and data services in the United States. Services include converged networks and unified communication solutions, call centers, system design, implementation, integration, maintenance, data storage and archiving and other professional services primarily for mid-sized and enterprise businesses. ConvergeOne has over 4,100 customers, including 46% of the Fortune 100 companies, operating in virtually every industry, including the financial, technology & communications, healthcare, and energy sectors. The company is headquartered near Minneapolis in Eagan, MN (www.converge-one.com).
Genstar Capital invests from $50 million to $400 million in middle-market companies that have enterprise values from $50 million to $1 billion and EBITDAs greater than $15 million. Sectors of interest include financial services, software, healthcare, and industrial technology industries. The firm was founded in 1988 and is based in San Francisco (www.gencap.com).
“We are pleased to have built this strong platform and positioned it for continued growth. We continue to evaluate a robust pipeline of investments in the software sector and look forward to applying our expertise in new opportunities to transform businesses into industry leaders,” said Mark Hanson, Genstar Operating Partner.
Clearlake invests in special situations such as corporate divestitures, recapitalizations, buyouts, restructurings, turnarounds and minority equity investments. Sectors of interest include business services; communication; consumer products and retail; defense and public safety; energy and power; healthcare; industrials; media; and technology. Clearlake currently manages approximately $1.4 billion of equity capital. The firm was founded in 2006 and is headquartered in New York (www.clearlakecapital.com).
2014 PEPD • Private Equity’s Leading News Magazine • 6-19-14