Ares Buys Convergint from KRG
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Ares Buys Convergint from KRG

Ares Management has acquired Convergint Technologies, a designer, installer, and servicer of electronic security, fire and life safety, and building automation systems, from KRG Capital.

Convergint was founded in 2001 and has 3,400 employees in 80 locations throughout the US and Canada, Europe, Asia and Australia.  The company, led by CEO Ken Lochiatto, is headquartered in the Chicago suburb of Schaumburg (www.convergint.com).

KRG acquired Convergint in August 2012 and has completed 19 add-on acquisitions, 14 of which have been closed since early 2016. The most recent buy, in December 2017, was the acquisition of Germantown, MD-based Genesis Security Systems which serves a Mid-Atlantic base of clients that includes AstraZeneca, Exelon, FEMA, National Public Radio, the International Monetary Fund, PEPCO, and the World Bank Group.

“During our partnership with KRG, the company successfully executed a multi-pronged growth strategy highlighted by consistent investment in its sales team, entering new end markets such as government and banking, and expanding its geographic footprint, including a global expansion in Asia and Europe, through the opening of new office locations and the completion of 19 add-on acquisitions,” said Convergint’s Co-Founder and Executive Chairman, Dan Moceri. “We sincerely thank KRG for the incredible partnership we have enjoyed, and we look forward to working with Ares on writing the exciting next chapter in Convergint’s growth story.”

KRG Capital specializes in acquiring and recapitalizing unique and profitable middle-market companies that have from $10 million to $100 million or more of EBITDA.  Founded in 1996, KRG has $4.4 billion of capital under management and is based in Denver (www.krgcapital.com).

“Over the past five years, we have enjoyed an incredible partnership with Convergint’s industry-leading management team,” said Ted Nark, Managing Director at KRG. “Their outstanding execution of Convergint’s growth strategy has positioned the company as the market leader in electronic security and we are confident they will continue their remarkable track record of growth in the years to come.  We wish them all the best with their new financial partner Ares.”

Ares Management (NYSE:ARES) has approximately $106 billion of assets under management and invests in private equity, leveraged loans, high-yield bonds, distressed debt and private debt.  Within Ares, its private equity group manages $25 billion of assets and is currently investing its fifth private equity fund with $7.8 billion of committed capital.  Ares is headquartered in Los Angeles with offices across the United States, Europe, Asia and Australia (www.aresmgmt.com).

“Convergint is a leader in its industry, with a unique culture and a longstanding track record of fostering the development of its colleagues and delivering outstanding service to its customers,” said Matt Cwiertnia, Partner and Co-Head of North American Private Equity at Ares. “We are excited to partner with the Convergint management team and look forward to supporting the company in its next phase of growth.”

The sale of Convergint is the 12th exit that KRG has completed from its fourth fund which closed in November 2007 with $1.96 billion of capital commitments.

William Blair was the financial advisor to Convergint and Imperial Capital was the financial advisor to Ares.

© 2018 Private Equity Professional | February 5, 2018

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