martinwolf
Transaction Analysis
Millstein & Co. Acquires Atlantix from Presidio
Financial Information
Transaction Facts
- IT and telecom equipment reseller Atlantix Global Systems announced yesterday that it had been acquired by Millstein & Co., a private equity firm specializing in investments in the financial services, technology, industrial, consumer and technology-enabled business services sectors.
- Atlantix was previously a component of Presidio, which acquired Atlantix in March 2007 in its acquisition of solution provider Solarcom. Solarcom was one of a series of acquisitions by Presidio that were estimated by CRN at the time as elevating the company to $800 million.
- Since its acquisition by Presidio, Atlantix has built up its offerings and vendor partnerships, expanding into position 155 on CRN's SP500 list. Presidio, currently ranked No. 21 on the SP500 list, has been expanding away from product reselling and toward its services offerings.
Focusing on Core Competencies
- Pruning Non-Core Segments: In a brief statement announcing the transaction, Presidio CEO Bob Cagnazzi stated that "Atlantix's business is not core to Presidio." While the reselling business is largely refresh-centric, managed services provides a steady inflow of predictable recurring revenue.
- Building Scale in a Fragmented Market: Millstein has experience in the IT solution provider market, having bought DLT Solutions in a martinwolf transaction this January. By providing specialized resources and guidance, Millstein can help Atlantix achieve significant scale and capitalize on what is today a fragmented market.
- Private Equity Shopping Spree Continues: This deal is the most recent example of increased attention from private equity players on the solution provider space. In addition to the earlier purchase of DLT, this year has seen Kelso acquire Sirius, Columbia Partners acquire MTM, Blackstone and Carlyle submit a bid for NCR, and several other examples of IT supply chain companies turning to private equity to achieve an exit.
For more information about this transaction
, click here to read the press release.
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With offices in the San Francisco Bay Area, martinwolf is a leading M&A Advisory focused on middle-market companies in the IT Services, IT Supply Chain, IT-Enabled Business Process Outsourcing and Software as a Service (SaaS) space. Since 1997, our team has completed more than 140 transactions in nineteen countries and sold seven divisions of Fortune 500 companies. The firm is also a presenting sponsor of the Global IT M&A Forum. martinwolf is a member of FINRA and SIPC. For more information, visit www.martinwolf.com. To learn more about martinwolf, contact Matthew Putzulu at [email protected]. © martinwolf 2015 |
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