Private Equity Firm HKW Acquires CMIT Solutions
CMIT Solutions, an IT managed services provider franchiser, has been acquired by private equity firm HKW. Financial terms of the deal were not disclosed.
This is the latest technology M&A deal that ChannelE2E has covered so far in 2023. See more than 2,000 technology M&A deals involving MSPs, MSSPs & IT service providers listed here.
HKW, founded in 1903, is based in Indianapolis, Indiana. The firm has 41 employees listed on LinkedIn. HKW is a middle-market PE firm investing in companies with talented management teams, according to its site.
CMIT Solutions, founded in 1996, is based in Austin, Texas. The company has 395 employees listed on LinkedIn. CMIT’s areas of expertise include managed services, networking, security and backup and disaster recovery.
The move is part of CMIT’s strategy to double systemwide revenue to $200 million by 2028, according to the company. CMIT’s systemwide revenue surpassed $100 million in 2022.
Based in Indianapolis, Indiana, HKW invests in profitable middle-market companies in the technology sector.
HKW Acquires CMIT Solutions: Leadership Insight
Roger Lewis, who was appointed as CEO of CMIT in 2019, commented:
“HKW shares our goal of accelerating our company’s growth while creating more value for our clients. Their expertise and support will be instrumental as we achieve the next phase of our maturity through new initiatives in marketing, sales, and operations, including adding centralized fulfillment capabilities.”
Daniel Kim, partner at HKW, said:
“The MSP and cybersecurity industry continues to expand as businesses seek solutions to address increasing cyber threats and IT complexity. We recognize the tremendous opportunity in front of CMIT. We’re excited to be part of helping the company build its scale to meet the growing demand for technology and security services in the coming years.”
HKW’s Additional Acquisition
At the same time, HKW announced the acquisition of HTW, Inc, an MSP which will serve as the foundation of a corporate affiliate, establishing a nationwide fulfillment center, the company said.
The program leverages the acquisition of one of CMIT’s top-performing franchisees with existing capacity to serve multi-location accounts, according to HKW. The corporate affiliate will strengthen CMIT’s ability to support larger enterprise customers, the firm said.