Private Equity Firm Acquires MSP: MidOcean Partners Buys InterVision Systems
Private equity firm MidOcean Partners has acquired a majority stake in InterVision Systems. Existing InterVision investor Huron Capital will maintain a stake in the MSP. Financial terms of the deal were not disclosed.
This is M&A deal number 414 that ChannelE2E has covered so far in 2020. See the full M&A deal list here.
InterVision will leverage MidOcean’s investment to fund organic growth and potential acquisitions. M&A targets include companies focused on cloud consulting and managed services, artificial intelligence and cybersecurity services, InterVision says.
InterVision and MidOcean Partners: MSP and Private Equity Background
InterVision, founded in 1993, has 10 offices and more than 300 employees, servicing more than 1,500 clients. The company specializes in cloud transformation, networking, collaboration, security and datacenter infrastructure.
InterVision has extensive M&A experience. The MSP in recent years has acquired six companies:
- October 2019: Fortis Networks for professional services and IT consulting.
- September 2019: SeyVu for analytics, artificial intelligence & machine learning consulting.
- September 2018: InterVision acquired Infiniti for Amazon Web Services (AWS) and Microsoft Azure expertise.
- March 2018: InterVision acquired Bluelock for disaster recovery as a service (DRaaS).
- December 2017: InterVision acquired Independent Technology Group (ITG), an integrator of networking, storage and security solutions
- June 2017: InterVision merged with Netelligent Corp., a provider of Hybrid IT solutions.
Meanwhile, MidOcean partners has experience in the IT solutions provider market. The company owned and then sold government solutions provider System One to Thomas H. Lee Partners.
MidOcean Partners Acquires InterVision Systems: Executive Perspectives
In a prepared statement about the investment, Elias Dokas, managing director at MidOcean, said,
“MidOcean has been evaluating the IT services space for a number of years and is thrilled to partner with InterVision’s exceptional management team and Huron Capital in the Company’s next phase of growth. We believe InterVision’s end markets will continue to enjoy strong growth for years to come as companies both small and large make investments in cloud and other areas of IT infrastructure to make their businesses more efficient, scalable and dynamic. We will continue to support an aggressive acquisition plan for InterVision that focuses on cloud services, networking, security, and managed services.”
Added Aaron Stone, president and CEO of InterVision:
“MidOcean has an exceptional track record investing in leading middle market companies that are poised for rapid growth. Their partnership, along with their industry knowledge and expertise, provides a strong foundation for investment in our people, product development, territory expansion and acquisitions. It enhances our ability to better serve our clients and expand into emerging markets.”
Concluded Brian Rassel, principal at Huron Capital:
“We are extremely pleased with InterVision’s position in the marketplace and look forward to continuing our involvement with the organization. MidOcean’s investment is evidence of the growing leadership position InterVision has in strategic areas such as cloud services and IT resiliency. Both markets are poised for rapid expansion.”
Huron Capital first acquired the InterVision stake in 2016.
Additional businesses involved in this investment include:
- Gibson Dunn & Crutcher LLP acted as legal advisor to MidOcean.
- KPMG served as financial advisor.
- Honigman LLP acted as legal advisor to InterVision.