Wind Point Partners has acquired Corbett Technology Solutions (CTSI) from Tower Arch Capital. Tower Arch acquired CTSI in November 2016.
CTSI designs, installs and maintains audiovisual, sound, fire safety, healthcare, and education communications technology for clients in multiple end-markets, including corporate, government, healthcare, education, senior living, multi-family residential, and houses of worship. The company, founded in 1969, is led by CEO Gino Ruta and is headquartered near Washington DC in Chantilly, Virginia.
Wind Point partnered on this investment with the CTSI management team, and its executive advisors George Pierson and Bob Chauvin. Mr. Ruta and management will remain with the business and retain an ownership stake in the company. Mr. Pierson and Mr. Chauvin will serve on CTSI’s board of directors.
Mr. Chauvin is a 30-year fire and life-safety systems industry veteran, having spent most of his career at Massachusetts-based Tyco SimplexGrinnell, where he retired as president in 2017. Mr. Chauvin will be actively involved in the development and execution of CTSI’s future acquisition strategy. Mr. Pierson has more than 30 years of experience in the engineering services industry, including roles as president and CEO of New York-based Parsons Brinckerhoff, and CEO of San Diego-based Kleinfelder Group, which Wind Point acquired in November 2018.
“We are extremely pleased to be partnering with Wind Point due to their long history of scaling businesses and accelerating growth,” said Mr. Ruta. “Since CTSI’s founding, we have successfully grown our service capabilities, including enhanced managed and subscription services, while extending geographic reach by prioritizing the needs of our customers, partners and employees. Our focus remains the same, and with Wind Point’s support we will further expand our capabilities to better serve those constituencies and reach new markets.”
“We are very excited for the opportunity to partner with the high-quality professionals at CTSI,” said Nathan Brown, a managing director at Wind Point. “Gino and the talented people at CTSI have built a market leader that is positioned for further expansion. CTSI is a fundamentally strong business, including double-digit growth rates and resilient performance through the great recession and the current pandemic.”
Chicago-based Wind Point invests from $50 million to $100 million in companies with EBITDAs of at least $10 million. Industries of interest include business services, consumer products and industrial products. Wind Point is currently investing out of Wind Point Partners IX LP which began fundraising in 2019.
Tower Arch invests in middle-market companies with revenues between $20 million and $150 million or EBITDA between $5 million and $25 million. The firm – based south of Salt Lake City in Draper, Utah – was founded by former professionals from Huntsman Gay Global Capital and includes partners Rhett Neuenschwander, David Parkin, Ryan Stratton, and David Topham. Tower Arch closed its second fund in March 2019 at an oversubscribed hard cap of $450 million. The firm’s debut fund closed at its hard cap with $272 million of capital in July 2014.
“CTSI is representative of Tower Arch’s focus on partnering with and growing family and founder-owned businesses to help them reach their next level of growth and success,” said Mr. Topham. “We appreciate everything that CTSI’s founder, Chris Corbett, has put into building CTSI’s culture and customer-first focus since the company’s founding 50 years ago, and we are grateful that he trusted us to be stewards of his business. CTSI has found another great partner in Wind Point to continue its next chapter.”
Debt financing for the transaction was provided by Czech Asset Management.
Private Equity Professional | June 25, 2020
