it services

Kian and ParkSouth Form IT Services Platform

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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

Southfield Building Ntiva

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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.

Ntiva is a full-service provider of managed IT services for small and medium-sized businesses. The company’s services include onsite support, remote monitoring, cloud services, backup and disaster recovery, and strategic consulting. The company was founded in 2004 and is headquartered in McLean, VA with an additional office Beverly Hills, CA (www.ntiva.com).

Post-closing, Lore Systems will continue as a high-level strategic IT consulting firm. “Partnering with Ntiva was an easy decision,” said Tien Wong, Chairman of Lore Systems, “As we move our focus to growing our strategic consulting business, we wanted to ensure that our commercial clients would be in great hands with Ntiva who, like us, take a strategic, client-centric approach to their service business.” Lore Systems was founded in 1995 and is headquartered in Silver Spring, MD (www.lore.net).

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 (www.southfieldcapital.com).

Lore Systems was advised by Hafezi Capital (www.hafezicapital.com) on this transaction.

© 2018 Private Equity Professional | December 14, 2018

Huron Adds to InterVision

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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.

Infiniti Consulting Group provides a range of IT services. Areas of expertise include Amazon Web Services, Microsoft Azure and other hybrid cloud services as well as on-premise consulting and software design and development. Founded in 2004, Infiniti is led by founders Scott Sanders and John Gray, and President Scott Drossos. The company is headquartered near Sacramento in Folsom, CA (www.infiniticloud.com).

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 (www.intervision.com).

“We were impressed with Infiniti’s proven success servicing hundreds of public sector clients, from state and local governments, to universities and healthcare organizations,” said Aaron Stone, President and CEO of InterVision. “The Infiniti acquisition is a great fit for InterVision because it strengthens our position as a leading-edge IT provider—delivering in data center, cloud capabilities and IT operations.”

Over the last two years, InterVision has also merged with or acquired three other companies: Indianapolis-based Bluelock (March 2018), a provider of disaster recovery and infrastructure as a service solutions; Chesterfield, MO-based Netelligent (June 2017), a provider of IT services including on-premise and hosted managed services, security, and storage; and Westlake Village, CA-based Independent Technology Group, a provider of IT services, including networking, storage, and security services.

“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 (www.huroncapital.com).

© 2018 Private Equity Professional | September 13, 2018

Warren Keeps Building SSP

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SSP Innovations, a provider of IT services to utilities and a portfolio company of Warren Equity Partners, has acquired TC Technology.

TC Technology’s mobile software provides geospatial information to field staff to support service orders, work orders, system inspections, and to manage maintenance and compliance activities. The company’s customers include electric, gas, and water utilities, municipalities, cooperatives, private companies, and engineering firms. TC Technology was founded in 2000 and is headquartered in Carlsbad, CA (www.tctechnology.com). Jason Linley, the President and owner of TC Technology, will join SSP as Director of Mobile Product Management.

SSP Innovations provides IT services and software development – with a specialty in geographic information systems (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 (www.sspinnovations.com).

“SSP had an overarching goal to add a mobile offering to our GIS business, and our longstanding relationship with TC Technology made them the perfect fit,” said Skye Perry, CEO of SSP. “Organizations of all types are becoming increasingly dependent on their GIS-specific data and applications, which combined with an industry shift to a more mobile utility workforce, results in a need for integrated mobile applications for field operations.”

The buy of TC Technology is the third add-on acquisition by SPP under Warren Equity ownership. In April 2018, SPP acquired Milwaukee-based Wind Lake Solutions, a provider of geographic information systems to utilities, telecommunication providers, and municipal government organizations; and in June 2017, SPP acquired Paleon Solutions, an IT services provider based in Castle Rock, CO.

“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.”

With the support of Warren Equity, SSP plans to continue to expand its service offerings and geographic footprint through a combination of organic growth and add-on acquisitions.

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 (www.warrenequity.com).

© 2018 Private Equity Professional | July 16, 2018

Svoboda Sells SWC to BDO

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Svoboda Capital Partners has sold SWC Technology Partners, acquired in August 2014, to BDO USA.

SWC Technology Partners (SWC) is a provider of information technology consulting and managed services to the middle-market, serving both business-to-business and business-to-consumer customers primarily in the Midwest and Chicago metropolitan area. The company has more than 200 employees and is headquartered in the Chicago suburb of Oak Brook with an additional office in Indianapolis (www.swc.com).

BDO USA is the United States member firm of BDO International, a global accounting network. The company’s services include a wide range of tax, audit and advisory services. BDO USA is headquartered in Chicago (www.bdo.com).

SWC will operate as a wholly-owned subsidiary of BDO USA with all current personnel continuing to operate from SWC’s Oak Brook and Indianapolis offices. Bob Knott, President of SWC, along with other members of the SWC management team, will be joining BDO as new principals.

“Our partnership with Svoboda Capital has enhanced the long-term growth and success of SWC and has been an enjoyable experience along the way,” said Mr. Knot. “By joining BDO, a leading national brand with expansive global resources, we will have a wider platform and more delivery channels to continue building upon our success.”

“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 (www.svoco.com).

Petsky Prunier (www.petskyprunier.com) was the financial advisor to SWC and Katten Muchin Rosenman (www.kattenlaw.com) provided legal services.

© 2018 Private Equity Professional | July 13, 2018

Riverside Buys Winxnet, Adds-On Quick

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The Riverside Company has acquired Winxnet, a provider of IT consulting and outsourcing services to small and medium-sized businesses.

Winxnet’s consulting and managed services include identifying, purchasing, installing, configuring and supporting IT infrastructure such as workstations, ancillary devices, networking devices, cloud services, business applications, managed security services, backup and disaster recovery services as well as remote and field support teams. Winxnet is headquartered in Portland, ME with additional offices in Lawrence, MA, and Chattanooga, TN (www.winxnet.com).

“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 (www.krns-inc.com).

Winxnet Co-founders Chris Claudio and Michael Williams will lead the combined company as CEO and President, respectively, and will be joined by Jeremy Kurth as CTO. Winxnet will remain headquartered in Portland, ME and will now have approximately 130 employees. “This merger brings together two world-class managed service providers with entirely complementary proficiencies around IT management and delivery. Combined with the intellectual property and IT automation software that K&R has developed, we are poised to transform an industry, including fundamentally improving the overall client experience with IT,” said Mr. Claudio.

“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 (www.riversidecompany.com).

Working with Mr. Schlachet and Mr. Sauer on the transaction for Riverside were Principal Brad Resnick, Senior Associate Joshua Smith, Operating Partner Rex Niles and Finance Director Gary Schlegel. Partner Jim Butterfield sourced the transaction for Riverside and Principal Dan Haynes helped secure financing.

Crescent Capital Group (www.crescentcap.com) provided funding for the transaction.

© 2018 Private Equity Professional | July 2, 2018