Kian Capital Partners, in partnership with ParkSouth Ventures, has acquired Enterprise Computing Services (ECS) and My IT. Both companies are providers of IT managed services.
ECS, founded in 1994 and based in Shreveport, Louisiana, has 45 employees and serves customers in northern Louisiana and eastern Texas. My IT, founded in 2000 and based near New Orleans in Metairie, Louisiana, has 25 employees and serves customers in southern and central Louisiana.
The newly combined companies, led by ECS’s chief executive officer Kevin Cook, will now provide remote monitoring, technical support, hosted cloud, disaster recovery, virtual CIO and security services to small and mid-size businesses, and has begun adopting the My IT brand across all its operations.
My IT is a portfolio company of Vancouver, British Columbia-based Top Down Ventures. “The successful combination of ECS and My IT will allow our partner and current CEO of My IT, Patrick Leonard, to focus his full attention on our portfolio company Backup Radar, a Vancouver-based IT services provider,” said Greg Celmainis, a managing director at Top Down which is exiting its investment in My IT. “We are very pleased to see My IT join forces with ECS to form the preeminent provider of IT managed services in the Gulf South.”
“ECS and My IT have each forged successful, growing businesses by establishing enduring client relationships, solution-oriented service and support, and professional, responsive teams,” said Mr. Cook. “Kian’s collaborative approach made them the perfect partner for us as we seek to capitalize on a number of growth initiatives. It was clear from the start that they don’t just provide capital but offer an experienced team to help drive value through a partnership-oriented approach.”
“ECS and My IT are two industry-leading managed service providers differentiated by their full suite of cutting-edge solutions offered to a growing and loyal customer base,” said Matt Levenson, a partner at Kian Capital. “We are excited to partner with and support Kevin and the collective teams at ECS and My IT to help develop strategies that will further accelerate growth and provide clients with exceptional IT services and solutions that meet their complex needs.”
Charlotte and Atlanta-based Kian Capital makes both control and minority investments of $7 million to $30 million of equity and subordinated debt in companies that have revenues of $10 million to $100 million and EBITDA of $2 million to $15 million. Sectors of interest include consumer, services, specialty manufacturing and value-added distribution. In March 2018 the firm held a final hard cap closing of KMP II LP with total capital of $275 million.
Kian partnered on this transaction with Charlotte-based ParkSouth Ventures. ParkSouth invests in United States-based founder or family-owned service businesses that have revenues of more than $10 million.
Kian and ParkSouth intend to pursue add-on acquisitions for their new IT services platform that expand its service territories, service offerings and capabilities.
© 2020 Private Equity Professional | February 3, 2020