AHEAD,Data Blue and Sovereign Systems are merging to form a $1.3 billion digital transformation solutions provider that offers cloud and managed services to Fortune 1000 customers, the firms disclosed this morning. Court Square Capital Partners, a private equity firm, has owned AHEAD since 2015 and Data Blue since April 2019.M&A Interview: AHEAD CEO Daniel AdamanyHere are five key takeaways from the deal:
Technical Expertise: AHEAD's focus includes consulting and implementation expertise in areas of enterprise service management, DevOps, monitoring and analytics, and security. Data Blue's focus includes managed services and networking. Sovereign Systems' focus includes cloud, VMware and ServiceNow expertise.
The combined company will be headquartered in Chicago, along with continued investment in Data Blue’s Atlanta and Nashville hubs, plus other sales and services offices across the Midwest and East Coast, the company says.
AHEAD, Data Blue, Sovereign Systems Merger: Executive Perspectives
Adamany will lead the combined company. Stephen Ayoub, founder and CEO of Data Blue, shifts to president and chief revenue officer of the combined firm.In a prepared statement about the deal, Adamany said:
“Together we’ll harness tremendous synergies between our offerings, our partners, and the markets we serve - all to the enormous benefit of clients.”
Ayoub added:
“This merger creates enormous value for our customers and partners, and makes sense on multiple levels. Our firms share similar roots, are committed to client success, and know what it takes to grow profitably in a very competitive industry.”
Matt Cadogan, managing partner of Sovereign, concluded:
“With this combination, our ability to scale expands substantially. Our larger, combined brand will help us serve clients more effectively, but the minimal regional overlap will allow us to maintain the close-knit relationships that our clients have come to expect.”
The deal is expected to be finalized by December 2019. It sounds like the combined company plans to unveil a new corporate in early 2020. Additional acquisitions -- focused on the West Coast and/or additional IT service areas -- may surface around 2021, Adamany told ChannelE2E.
Private Equity's Role in IT Solutions Provider Acquisitions
Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.