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April 8, 2019 
martinwolf  Transaction Analysis

CD&R to Acquire Majority Stake in Sirius Computer Solutions

Financial Information
  • Not disclosed
 
Transaction Facts
  • IT solutions integrator Sirius Computer Solutions announced Friday an agreement with private investment firm Clayton, Dublier & Rice (CD&R) to acquire a majority interest in Sirius. Current majority owners Kelso & Co. will exit their investment at the conclusion of this transaction.
  • Financial details of the transaction were not disclosed, however, Sirius reported in the press release annual gross sales of $3.5 billion.
  • No changes are expected in Sirius's existing management structure, though CD&R partner and former SunGard Data Systems CEO Russ Fradin will serve as chairman of the Sirius board of directors.
  • The deal is expected to close in Q2 of 2019, subject to regulatory approvals and other customary closing conditions.
martinwolf  Analysis
  • A Pattern of Successful Partnerships: CD&R is the latest in a line of partners for Sirius - a 2006 investment by Thoma Bravo helped the company grow from $600M to $1.6B in annual revenue by 2015, while the partnership with Kelso has taken it to $3.5 billion today.
  • Buy and Build: Key to Sirius's growth strategy is smart M&A, financed through its partners. Its most recent deal, the acquisition of Forsythe Technology Inc., added nearly $1 billion in sales and nearly 1,000 employees.
  • Smart Money: CD&R is a storied name in the PE industry and was founded in 1978 - two years before Sirius. It has invested over $28 billion in 84 companies since inception. Its experience with tech-enabled services businesses, particularly in the healthcare space, will benefit Sirius as they pivot toward healthcare and security services offerings.
  • Looking Ahead: Today, Sirius is one of the largest solution providers thanks to its history of organic and inorganic growth. Looking forward, both Sirius and CD&R expect to continue these trends - particularly in high-value focus areas like managed services, cloud, and security.
For more information about this transaction, click here  to read the press release.

martinwolf was not the advisor in this transaction.

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Headquartered in Scottsdale, Arizona with an office in New York, 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 160 transactions in over 20 countries and sold eight divisions of Fortune 500 companies. 

 

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