Spotlight

An archive of past spotlight issues.

 

The martinwolf team tracks noteworthy mergers and acquisitions, and offers
commentary on issues that impact our industry. Here is an archive of past

decor decor
“Our team is proud and excited to now partner with American Securities as we embark on our next phase of growth.”

-Rich Fennessy, Chief Executive Officer of Trace3

H.I.G. Capital Announces Sale of Trace3

Financial Information
  • Not Disclosed
Transaction Details
  • H.I.G. Capital announced that one of its affiliates has entered into a definitive agreement to sell Trace3, a premier provider of IT solutions and services, to affiliates of American Securities.
  • Financial terms of the transaction are not being disclosed, but the press release cites Trace3 revenue of $1.4 billion.
  • The transaction remains subject to customary closing conditions.
martinwolf Analysis
  • Large-Scale Deal: This transaction is one of the largest system integrations deals in recent memory. While financial terms of the deal were not disclosed, the transaction is rumored to have a lofty multiple.
  • Rich in Value: Trace3 CEO Rich Fennessy has a track record of strong leadership and value creation over a short period of time. (martinwolf has worked with him at Insight and profiled him twice in our Executive Perspective publication. Click here to read: 2017 and 2019).
  • Dynamic Dealmaker: H.I.G. Managing Direction Kevin Van Culin continues to be active in the VAR and system integration space. Van Culin’s ability to understand value and deals within this particular sphere has proven to be a difference maker for H.I.G.
  • Strong Partner for IT-Services: Miami-based H.I.G Capital is a global alternative investment firm with $45 billion of equity capital under management and a strong record of success in the IT-services space. Following H.I.G.’s 2017 investment in Trace3, the California-based company tripled revenues to $1.4 billion through a series of strategic growth initiatives and acquisitions.
  • Strategic M&A Expansion: Trace3 was able to expand rapidly by leveraging M&A activity. Following H.I.G.’s 2017 investment, Trace3 merged with fellow H.I.G.-owned company Data Strategy in 2018. The combined firm then acquired Groupware Technology in 2020 to expand Trace3’s market position in Northern California and Arizona.

For more information about this transaction, click here to read the press release from H.I.G. Capital.

martinwolf was not the advisor in this transaction.

previous post Back to Articles next post

24 Jan 2022

Tailwind Capital Sells AST Corp. to Recognize Partners

Financial Information ($USD) Not Disclosed  Transaction Details Tailwind Capital today announced it has completed its sale of AST Corporation to Recognize Partners, a technology services focused investment platform. Financial information was not disclosed. AST, a leading cloud and digital transformation solutions provider, simultaneously announced the deal, categorizing it as a strategic investment by Recognize to enable AST to accelerate investment in innovation,...

03 Jan 2022

Office Depot Sells CompuCom Systems

 Financial Information ($USD) Transaction Value: ~ $305 million Enterprise Value: $1.72 billion EV/LTM Revenue: 0.19x EV/LTM EBITDA: 3.85x  Transaction Details The ODP Corporation (NASDAQ: ODP) announced that it has sold its CompuCom Systems subsidiary to an affiliate of Variant Equity in a transaction valued up to $305 million. The transaction consideration of up to $305 million consists...

29 Dec 2021

Happy Holidays – The 2021 martinwolf Annual Letter

Dear Clients, Partners, and Friends of martinwolf M&A Advisors,   I hope you all are having an enjoyable holiday season with family and friends.   It’s been my tradition in this annual end-of-year letter to spend time reflecting on the past year, and to look forward to what the next year holds for us. We have plenty...