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
Ntiva, a provider of managed IT services and a portfolio company of Southfield Capital, has acquired the commercial managed services and hosting division of Lore Systems. Southfield Capital acquired Ntiva in December 2016.
The buy of the Lore Systems’ division strengthens Ntiva’s presence in the Washington DC metro area and increases Ntiva’s client base to over 500 organizations. “We are honored to integrate the Lore clients into our growing portfolio of commercial and non-profit clients,” said Steven Freidkin, CEO of Ntiva. “We’re looking forward to helping them grow their business with the right technology strategy, keeping up with emerging tech trends while ensuring their systems are stable and secure.”
Southfield Capital makes control investments in companies that have revenues of $20 million to $100 million and EBITDA of $4 million to $12 million. Sectors of interest include outsourced business services, specialty finance, and value-added distribution. In August 2017, the firm held a final close of Southfield Capital II LP with approximately $200 million in capital commitments. The close was at the fund’s hard cap and exceeded its original target of $175 million. Southfield Capital was founded in 2005 and is headquartered in Greenwich, CT (
InterVision Systems, a portfolio company of Huron Capital, has acquired Infiniti Consulting Group, an IT services provider. Huron acquired InterVision Systems in partnership with RLG Capital and senior members of the company’s management team in May 2016.
InterVision provides cloud and enterprise IT services including architecture, integration and configuration, installation, maintenance contract renewals, staff augmentation, project management, and managed services. The company was founded in 1993 and has headquarters in both Santa Clara, CA and Chesterfield, MO with additional offices in San Francisco and Westlake Village, CA; Bellevue, WA; and Greenwood Village, CO (
“We believe Infiniti’s deep roots in the public sector and extensive knowledge will give the InterVision platform a competitive edge,” said Matt Hare, Partner at Huron Capital. “This acquisition aligns with our buy and build approach and growth strategy for InterVision and continues to position us as an industry leader.”
Huron Capital invests up to $70 million per transaction in middle-market companies that have revenues up to $200 million and EBITDAs of $5 million or more. Sectors of interest include business services, consumer products & services, and specialty industrials. Huron was founded in 1999 and is headquartered in Detroit (
SSP Innovations, a provider of IT services to utilities and a portfolio company of Warren Equity Partners, has acquired TC Technology.
“We are excited to complete our third add-on acquisition to the SSP platform in a little over a year of ownership,” said Scott Bruckmann, Partner at Warren Equity Partners. “We believe adding TC’s mobile software and product development capabilities will add tremendous value to our customer base.”
Warren Equity invests from $5 million to $40 million in North American-based companies with $3 million to $15 million of EBITDA. Sectors of interest include industrial and business services with a specific focus on infrastructure maintenance and repair. The firm is headquartered in Jacksonville Beach, FL (
Svoboda Capital Partners has sold SWC Technology Partners, acquired in August 2014, to BDO USA.
“On behalf of Svoboda Capital, it has been a pleasure to work with the team at SWC. Under management’s leadership, the team continues to strengthen its professional services domain expertise, striving to provide the highest quality service offering to its mid-market clients,” said Jeffrey Piper, Managing Director at Svoboda Capital. “We are proud of our association with the company and remain steadfastly interested in SWC’s continued success as part of BDO.”
Svoboda invests from $10 million to $20 million in business services, value-added distribution, and consumer products companies that have revenues from $10 million to $100 million and EBITDAs from $3 million to $15 million. The Chicago-based firm was founded in 1998 and has over $350 million of capital under management (
The Riverside Company has acquired Winxnet, a provider of IT consulting and outsourcing services to small and medium-sized businesses.
“Winxnet’s solid infrastructure, respected reputation and proven track record of organic and inorganic growth provided a strong case for our investment,” said Riverside Managing Partner Loren Schlachet. “With its robust presence in its core markets and commitment to reducing risk through automated service delivery, we have immense potential to expand Winxnet’s already-successful reach.” Riverside’s immediate efforts will focus on enhancing the company’s sales function and lead generation capabilities, continue to expand its automated service capabilities, and expanding the product suite.
Simultaneous with Riverside’s acquisition of Winxnet, the company has acquired K&R Network Solutions, a San Diego-based provider of IT consulting and managed services (
“From strategic plan development to tactical support, Winxnet truly is a one-stop shop for small- and medium-sized businesses in need of excellent IT support,” said Riverside Partner Brian Sauer. “The company has best-in-class operations and has developed proprietary software and processes that distinguish their services in the market. We’re excited to play an integral part in helping the organization reach its full potential.”
The Riverside Company is a global private equity firm focused on investing in and acquiring growing businesses valued at up to $400 million. Since its founding in 1988, Riverside has invested in more than 540 transactions and its portfolio includes more than 80 companies. The firm is headquartered in New York with 16 additional US and international offices (
Spire Capital has made an investment in Dynamic Quest, a provider of IT managed services.
Spire is partnering with Mr. Gomez on this transaction and he will continue to lead the organization along with his existing senior management team. “We are very excited about this new partnership with Spire Capital, as it marks a transformational phase in our organization’s evolution,” said Mr. Gomez. “With Spires’ support, we plan to continue forward with both organic growth as well as strategic acquisition growth over the next few years. This movement forward will allow Dynamic Quest to grow our product offerings while providing exceptional customer support to a larger client base.”
Spire invests from $15 million to $40 million in companies with revenues of at least $10 million and EBITDAs of $5 million. Sectors of interest include technology-enabled business services, media, communications and education. Spire is based in New York (
“Javier and his founding partners have built an incredible company providing managed IT and cloud services to their valued partners,” said David Schaible, a Partner at Spire. “Spire Capital has been an investor in numerous cloud service/IT-related companies and are proud to partner with Javier and his team during their next stage of growth. We continue to see increased demand in the marketplace for companies seeking to outsource IT and cloud-related services to industry specialists, and we believe that Dynamic Quest is uniquely positioned to continue to provide exceptional technology services while expanding their solution offerings and geographic reach for current and future customers.”
SSP Innovations, a provider of IT services to electric, gas, and water utilities and a portfolio company of Warren Equity Partners, has acquired Wind Lake Solutions.
SSP Innovations provides IT services and software development – with a specialty in GIS and workforce management – to electric, gas, and water utilities, as well as oil & gas pipeline operators and telecommunications providers. The company was acquired by Warren Equity in April 2017 and is headquartered in Centennial, CO (
“SSP and Wind Lake have a long history of working together and are an excellent cultural fit,” said Scott Bruckmann, a Partner at Warren Equity. “Since our original investment in SSP, we have been seeking to grow SSP’s data management offerings due to customer demand and Wind Lake was the ideal acquisition candidate.”
Warren Equity invests from $5 million to $40 million in North American-based companies with $3 million to $15 million of EBITDA. Sectors of interest include industrial and business services with a specific focus on infrastructure maintenance and repair. The firm is headquartered in Jacksonville Beach, FL (
InterVision Systems, a portfolio company of Huron Capital, has acquired Independent Technology Group (ITG), an IT systems integrator of networking, storage and security services.
InterVision provides cloud and enterprise IT services including architecture, integration and configuration, installation, maintenance contract renewals, staff augmentation, project management, and managed services. The company was founded in 1993 and has headquarters in Santa Clara, CA and St. Louis, MO and offices and data centers in the central and western US (
“In keeping with our buy-and-build approach, ITG brings key strategic capabilities that we believe will solidify our position as an industry leader and further position the company for strong growth,” said Matt Hare, a Partner at Huron Capital.
Huron Capital invests up to $70 million per transaction in middle-market companies that have revenues up to $200 million and EBITDAs of $5 million or more. Sectors of interest include specialty manufacturing, business services, consumer goods & services, and healthcare. Huron was founded in 1999 and has offices in Detroit and Toronto (
WestView Capital Partners has made a minority growth investment in Abacus Group, a provider of managed IT services. Abacus will continue to be majority-owned and operated by the company’s senior management team.
WestView Capital Partners makes majority and minority investments of $10 million to $50 million in lower middle market growth companies. Sectors of interest include healthcare services, business and technology services, software, industrial/manufacturing, and consumer/retail. Target companies will have operating profits between $3 million and $20 million. WestView manages approximately $1 billion in capital across three funds and is headquartered in Boston (
“We look forward to supporting Abacus’ management as they continue to capitalize on the growing opportunity for outsourced IT solutions within the financial services sector,” said Rick Williams, Managing Partner at WestView who will join the board of Abacus. “The company’s outstanding reputation and best-in-class offering coupled with a high-touch approach to customer service has enabled it to expand rapidly within the sector.”
“Abacus Group is an established leader in the managed IT services industry serving the hedge fund and financial institutions market,” said Tim Clifford, President and CEO of Abacus Finance. “We were extremely impressed with the senior management team and are excited to be their financing partner as they embark on the next stage of growth. As in other transactions, our success was a function of our speed, cash-flow flexibility, and certainty of close – key aspects of what we call our Total Partnership Approach.”
Abacus Finance provides cash flow senior financing to private equity-sponsored, lower-middle market companies that have EBITDA between $3 million and $15 million. Debt facilities can be as large as $60 million with a typical hold size ranging from $10 million to $30 million. Abacus was formed in June 2011 and is an affiliate of New York Private Bank & Trust which was founded in 1850. Abacus is based in New York (
