Riverside Buys Winxnet, Adds-On Quick

The Riverside Company has acquired Winxnet, a provider of IT consulting and outsourcing services to small and medium-sized businesses.

Winxnet’s consulting and managed services include identifying, purchasing, installing, configuring and supporting IT infrastructure such as workstations, ancillary devices, networking devices, cloud services, business applications, managed security services, backup and disaster recovery services as well as remote and field support teams. Winxnet is headquartered in Portland, ME with additional offices in Lawrence, MA, and Chattanooga, TN (www.winxnet.com).

“Winxnet’s solid infrastructure, respected reputation and proven track record of organic and inorganic growth provided a strong case for our investment,” said Riverside Managing Partner Loren Schlachet. “With its robust presence in its core markets and commitment to reducing risk through automated service delivery, we have immense potential to expand Winxnet’s already-successful reach.” Riverside’s immediate efforts will focus on enhancing the company’s sales function and lead generation capabilities, continue to expand its automated service capabilities, and expanding the product suite.

Simultaneous with Riverside’s acquisition of Winxnet, the company has acquired K&R Network Solutions, a San Diego-based provider of IT consulting and managed services (www.krns-inc.com).

Winxnet Co-founders Chris Claudio and Michael Williams will lead the combined company as CEO and President, respectively, and will be joined by Jeremy Kurth as CTO. Winxnet will remain headquartered in Portland, ME and will now have approximately 130 employees. “This merger brings together two world-class managed service providers with entirely complementary proficiencies around IT management and delivery. Combined with the intellectual property and IT automation software that K&R has developed, we are poised to transform an industry, including fundamentally improving the overall client experience with IT,” said Mr. Claudio.

“From strategic plan development to tactical support, Winxnet truly is a one-stop shop for small- and medium-sized businesses in need of excellent IT support,” said Riverside Partner Brian Sauer. “The company has best-in-class operations and has developed proprietary software and processes that distinguish their services in the market. We’re excited to play an integral part in helping the organization reach its full potential.”

The Riverside Company is a global private equity firm focused on investing in and acquiring growing businesses valued at up to $400 million. Since its founding in 1988, Riverside has invested in more than 540 transactions and its portfolio includes more than 80 companies. The firm is headquartered in New York with 16 additional US and international offices (www.riversidecompany.com).

Working with Mr. Schlachet and Mr. Sauer on the transaction for Riverside were Principal Brad Resnick, Senior Associate Joshua Smith, Operating Partner Rex Niles and Finance Director Gary Schlegel. Partner Jim Butterfield sourced the transaction for Riverside and Principal Dan Haynes helped secure financing.

Crescent Capital Group (www.crescentcap.com) provided funding for the transaction.

© 2018 Private Equity Professional | July 2, 2018

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