GTCR has signed an agreement to acquire Park Place Technologies, a third-party provider of maintenance services for post-warranty data center equipment. The transaction is expected to close in the fourth quarter of 2015.
Park Place, a portfolio company of WestView Capital since November 2012, provides services to storage, server, and networking equipment made by EMC, Dell, IBM, Cisco, Hitachi, NetApp, HP, and Sun/Oracle. The company has more than 5,000 customers including small and medium sized businesses as well as some Fortune 500 companies. The company is led by CEO Ed Kenty. Park Place was founded in 1991 and is headquartered in Cleveland (www.parkplacetechnologies.com). Mr. Kenty and other members of the senior management team of Park Place are co-investors in the transaction with GTCR.
“The business that Ed and the entire Park Place team have built over the last decade is a testament to their superior customer service and operating excellence,” said GTCR Managing Director David Donnini. “The entire Park Place team has built a tremendous platform that is well-positioned for long-term success.” GTCR has indicated that it will commit additional equity capital as needed to fund future acquisitions and organic growth initiatives. Working with Mr. Donnini on this transaction for GTCR was Larry Fey, Principal.
“We are excited to partner with GTCR at this exciting time in Park Place’s evolution,” said Mr. Kenty. “GTCR brings significant resources and experience in building industry-leading companies, and I believe they will be a valuable resource in the long-term expansion of our business. I would like to thank WestView Capital for their support over the last three years.”
WestView Capital Partners invests from $10 million to $30 million of equity in lower middle market companies with EBITDAs between $3 million and $20 million. Industries of interest include business and healthcare services; software and IT services; industrial and manufacturing; distribution and logistics; media and publishing; and consumer products and retail. The firm will invest both as a minority or majority investor. WestView currently manages over $500 million of equity and is based in Boston (www.wvcapital.com).
GTCR pioneered the investment strategy of identifying and partnering with executives to acquire and build companies through a combination of acquisitions and internal growth. The firm currently has nearly $11 billion in assets under management. Since its inception in 1980, GTCR has invested more than $12 billion in over 200 companies. The firm is based in Chicago (www.gtcr.com).
Lazard Middle Market was the financial advisor to Park Place and Latham & Watkins provided legal counsel. Kirkland & Ellis provided legal counsel to GTCR.
© 2015 PEPD • Private Equity’s Leading News Magazine • 11-30-15