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Sirius Computer Solutions Announces Equity Partnership with Kelso & Company

martinwolf Transaction Analysis
Financial Information
  • Not Disclosed
Transaction Facts
  • National IT solutions integrator Sirius Computer Solutions, Inc. announced today an equity partnership with private equity firm Kelso & Company. Kelso will acquire equity interest from current investor Thoma Bravo and Harvey Najim, Sirius’s founder.
  • Kelso & Company, a private equity firm established in 1971, has completed more than 110 investments. It announced that it would continue to support Sirius’s operational and strategic initiatives to build value for its clients.
  • On May 1, Sirius announced that it had acquired technology solution provider Varrow, Inc., its third acquisition in the last five years. Previously, it had built up its big data and BI capabilities through the purchase of Brightlight Consulting, and in November 2010 it rose above $1 billion in revenue when it acquired integration services provider MSI Systems Integrators.
  • The transaction is expected to close in the fourth quarter of 2015 pending regulatory approvals and other closing conditions.

Trading Places

  • From One Hand to Another: Since 2006, Sirius has been a portfolio company of Thoma Cressey (now Thoma Bravo), a private equity firm behind some of the technology sector’s largest leveraged buyouts, including last September’s take-private of Compuware. With this partnership, Thoma Bravo is exiting its investment in Sirius.
  • Using M&A to Broaden Appeal: Under the leadership of well-respected CEO Joe Mertens, Sirius, historically one of IBM’s largest solution providers, has diversified both its revenue source and its geographical concentration. A major element of the strategy was its acquisition of Varrow earlier this year – adding capabilities through M&A is often key to growing value.
  • Few Exit Options Available: IPOs are increasingly uncommon in the IT industry, especially for large IT solution providers such as Sirius. As such, we’re seeing more instances of IT supply chain companies turning to private equity to effect an exit, even when they are already portfolio companies. Today, private equity firms exist for companies in every stage in their lifecycle – when one is looking for an exit, others are happy to take the baton.

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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