decor decor
"The most important thing in communication is hearing what isn't said."

-Anonymous

Clearlake Capital to Acquire ConvergeOne from Genstar Capital

martinwolf Transaction Analysis
Financial Information Not Disclosed 

Transaction Facts

  • ConvergeOne, a provider of communications solutions and managed services to global enterprises, announced today that it was being acquired by Clearlake Capital, a private equity firm.
  • ConvergeOne is currently a portfolio company of Genstar Capital, which first invested in ConvergeOne in 2007.
  • Financial information for the transaction was not disclosed.

Active Players in an Active Space

  • Trading Places: This deal continues a trend of secondary PE buyouts, seen most recently with yesterday’s acquisition of Peak 10 by GI Partners from Welsh Carson. Genstar oversaw a period of mostly organic growth for ConvergeOne in the past seven years, and now Clearlake is looking to continue the momentum while growing its own investment.
  • Growing Demand: ConvergeOne is one of the largest Avaya channel partners worldwide and has an increasing presence in UCaaS. We’re seeing a continued demand for this type of cloud-based communication and with that a growing amount of competition in the space. The sector is becoming increasingly crowded with traditional manufacturers like Cisco, Brocade, Siemens, and Alcatel Lucent all vying to remain relevant while companies from Microsoft and Google to 8×8 and Evolve IP continue to challenge the status quo.
  • A History of IT Investment: Both Clearlake and Genstar have a history of involvement and recent investment in the IT space. Genstar, which has approximately $3 billion in capital under management, recently sold its interest in TravelClick, a cloud-based solution for hotel companies. Clearlake, which through a subsidiary acquired communications solutions provider Veramark in 2013, merged it with two other firms to create Calero Software.

For more information, click here for the press release. martinwolf was not the advisor in this transaction.

previous post Back to Articles next post

03 Feb 2021

Jeff Bezos To Step Down as CEO, Replaced By Cloud Chief

News Update Amazon (NASDAQ:AMZN) CEO Jeff Bezos announced yesterday he was stepping down as CEO effective Q3 2021, to be replaced by Amazon Web Services CEO Andy Jassy. Bezos will remain Amazon’s largest shareholder and transition to an Executive Chairman role, where he will continue to be involved in important strategic decisions. Amazon also announced...

13 Jan 2021

martinwolf Celebrates 24 Years

Dear Clients, Partners, and Friends of martinwolf M&A Advisors, In 1997, gas was $1.22 a gallon in the US, Great Britain handed Hong Kong back to China, and the Dow was at less than 8,000. For me, on this date in 1997 I founded this firm. Almost a quarter century later — and after 180+ transactions,...

11 Jan 2021

Staples Announces Offer to Buy Office Depot

*Financial Information ($USD) Enterprise Value:         $2.1 Billion EV/LTM Revenue:       0.22x EV/LTM EBITDA:        3.76x Transaction Update Staples announced today that it sent the board of directors for Office Depot (Nasdaq: ODP) a proposal to acquire “100% of the issued and outstanding common stock,” a transaction that it expected...