decor decor
"If you are not willing to risk the usual, you will have to settle for the ordinary."

-Jim Rohn

CD&R to Acquire Majority Stake in Sirius Computer Solutions

martinwolf Transaction Analysis
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.
previous post Back to Articles next post

15 Apr 2021

KKR to Acquire Ensono in $1.7 Billion Deal

Financial Information ($USD) Enterprise Value:    $1.7 Billion Transaction Details Global investment firm KKR & Co, Inc. (NYSE: KKR) is acquiring leading hybrid IT services provider Ensono from private equity firms Charlesbank Capital Partners and M/C Partners. While financials have not been disclosed, the transaction is valued at $1.7 billion inclusive of debt, according to Reuters....

12 Apr 2021

Microsoft Acquires Nuance in $19.7 Billion Deal

Financial Information ($USD) Enterprise Value: $19.7 Billion EV/LTM Revenue: 13.97x EV/LTM EBITDA: 89.55x   Transaction Details Microsoft (Nasdaq: MSFT) today announced that it will acquire Nuance Communications, Inc. (Nasdaq: NUAN) in an all-cash transaction valued at $19.7 billion. Nuance, a speech recognition and artificial intelligence company, will be acquired for $56.00 per share, approximately 23%...

22 Mar 2021

SYNNEX Announces Merger with Tech Data

SYNNEX Announces Merger with Tech Data   Financial Information ($USD) Enterprise Value: $7.2 Billion EV/LTM Revenue:  0.20x EV/LTM EBITDA: 9.50x   Transaction Details Leading distributor SYNNEX Corporation (NYSE: SNX) today announced that it will merge with fellow distributor, Tech Data, in a deal worth approximately $7.2 billion, including net debt. The deal creates a distribution...