CDI Technologies, a portfolio company of H.I.G. Growth Partners, has merged with Troxell Communications, a portfolio company of AEA Investors. H.I.G. Growth will have a majority equity interest in the combined company.
Troxell is a provider of technology systems used in classrooms, auditoriums, computer labs, and sports stadiums in K through 12 and higher education. The company’s range of services include consulting, design, integration, installation, and professional development and training.
Troxell was founded in 1946 and has more than 70 offices nationwide with a headquarters in Phoenix, AZ (www.troxellsolutions.com).
CDI Technologies is a refurbisher and remarketer of enterprise-grade IT equipment to educational institutions. CDI’s product line includes PCs, notebooks, tablets, servers, telecommunication and other technology equipment. The company holds ISO 9001 and ISO 14001 certifications and processes more than one million assets annually. CDI has over 300 employees and relationships with more than 4,000 school districts, colleges and universities across the United States and Canada. The company was founded in 1981 and is headquartered in Markham, ON (www.cditechnologies.com).
“CDI and Troxell are highly complementary and together create a powerhouse in the education technology space,” said CDI CEO Erez Pikar. “This merger expands the depth and breadth of our offering, doubles our sales reach and support into the education space, and establishes a scalable platform for future growth.”
“Both companies share a commitment to inspiring and forming long-term relationships with educators at the local level, which in some cases span over 50 years. We believe that Troxell-CDI will enable us to offer a broader portfolio of leading brands and end-to-end technology solutions and deliver an even higher level of personalized service and value to our customers,” said Mike Ruprich, Troxell CEO.
“We are very excited about the Troxell-CDI combination. Both companies have a long history of supporting the advancement of K-12 education through the use of technology,” said Steve Loose, a managing director with H.I.G. “H.I.G.’s experience and track record of success in merger integration will be very helpful to the success of the combined business.”
A source familiar with this transaction reports that Twin Brook Capital Partners, the middle-market direct lending subsidiary of Angelo Gordon, served as administrative agent on a $93,000,000 facility to support a debt refinancing and the merger of CDI and Troxell.
H.I.G. Growth Partners is the dedicated growth capital investment affiliate of H.I.G. Capital. The firm makes both majority and minority equity investments ranging from $5 million to $75 million in growth-oriented businesses with between $10 million and $100 million in revenues. H.I.G. Growth Partners considers investments across all industries but focuses on technology, healthcare, internet and media, consumer products and technology-enabled financial and business services (www.HIGgrowth.com).
AEA makes equity and debt investments in middle-market companies that operate in the following sectors: retail and consumer products, services, specialty chemicals, and value-added industrial products. The firm manages approximately $10 billion of capital. AEA was founded in 1968 by the Rockefeller, Mellon, and Harriman family interests and S.G. Warburg & Co. as a private investment vehicle for a select group of industrial family offices. The firm is headquartered in New York with additional offices in Connecticut, London, Munich and Shanghai (www.aeainvestors.com).
© 2019 Private Equity Professional | July 19, 2019
