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Presidio Private Equity Buyout Finalized: Lessons for Peer MSPs

Presidio, the North American IT solutions provider, has completed its shift from public markets to private equity ownership. The company, now owned by BC Partners, marches forward under the existing management team led by CEO Bob Cagnazzi.

For business owners and investors trying to understand digital transformation, MSP scalability and private equity trends, Presidio is definitely a company to watch.

Vinu Thomas, CTO, Presidio

Bob Cagnazzi, CEO, Presidio

In many ways, Presidio has been a bellwether company for tracking such IT service provider trends as hybrid cloud, managed services, digital transformation, and cybersecurity services. The company partners closely with such firms as Amazon Web Services (AWS), Cisco Systems, Dell EMC and VMware. Moreover, Presidio has been a first mover in such areas as VMware Cloud on AWS.

Presidio has also evolved through acquisitions, and built out its own intellectual property. For instance, the company in 2018 acquired Red Sky Solutions to gain geographic reach and managed security expertise. And on the IP (intellectual property) front, the Presidio Concierge platform simplifies multi-cloud subscription and cost management services.

Presidio’s business journey has included multiple ownership models. The company launched an IPO in 2017 under previous investor Apollo Global Management. Fast forward to present day, and private equity firm BC Partners has finalized its $2.2 billion buyout of the IT solutions provider. The price tag includes Presidio’s net debt.

Presidio: Leadership Perspectives, BC Partners Expertise

Presidio’s well-known executive team remains in place. In a prepared statement about the company sale becoming official, CEO Bob Cagnazzi said:

“We are extremely excited to partner with BC Partners on Presidio’s next chapter. We believe our relationship with BC Partners will allow us to accelerate our growth, giving us the flexibility to provide our clients with the highest quality, optimal and innovative solutions for their complex and evolving IT needs, and at the same time providing our employees with an environment that continues to make Presidio a great place to work.”

Fahim Ahmed, partner, BC Partners

Added Fahim Ahmed, partner at BC Partners:

“Presidio is a world-class business led by an outstanding management team that consistently delivers for its partners and clients. We are excited to support the Company in its growth initiatives and strategic investment opportunities.”

BC Partners certainly knows its way around the IT services market. The private equity firm also has an ownership stake in Cyxtera, a major provider of data center and co-location services that acquired CenturyLink’s data center assets in 2017. Another key asset, PlusServer, is a managed hosting provider in Germany, Austria and Switzerland.

Presidio: Next Potential Moves

For clues on where Presidio may be heading next, partners can typically track the company at such events as Cisco Partner Summit and VMware VMworld, among others. Presidio CTO Vinu Thomas is a frequent speaker at such events. While he doesn’t reveal strategic company secrets, his comments during conference panels typically pinpoint emerging trends and opportunities before they go mainstream across the IT solutions provider market.

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