Private equity firm Gryphon Investors has acquired a ServiceNow Elite Partner called Highmetric, and merged two additional ServiceNow partners into that business. Financial terms of each deal were not disclosed.
These are technology M&A deals number 294, 295 and 296 that ChannelE2E has covered so far in 2021. See all technology M&A deals for 2021 and 2020 listed here.
Gyphon Investors says it has made the following moves:
- Acquired the ServiceNow division of Highmetric from The Acacia Group. Acacia has retained a minority investment in the company.
- Highmetric, backed by Gryphon, has also acquired ServiceNow partners Fishbone Analytics and Iceberg Networks.
- Rackspace veteran Matt Stoyka has joined Highmetric as CEO.
- Deloitte veteran and ServiceNow expert Den Roenfeldt has joined Highmetric as executive chair.
Private Equity Firm Gryphon Investors: IT Services Expertise
Although financial terms for each deal was not disclosed, here's a clue about Gryphon's commitment to succeeding in the ServiceNow partner ecosystem: The private equity firm, based in San Francisco, typically invests $50 million to $300 million in portfolio companies with enterprise values ranging from approximately $100 million to $600 million.
Moreover, Gryphon Investors has experience in and around the IT services provider (ITSP) market. For instance, the private equity firm owns Microsoft Azure cloud consultancy 3Cloud. And 3Cloud, in turn, acquired the consulting arm of Pragmatic Works in September 2020.
Three ServiceNow Partners Merge: Company Backgrounds
Here's some more info on each ServiceNow partner involved in the Gryphon deal:
- Fishbone Analytics, led by CEO Matt Nielsen, is an Elite ServiceNow Partner focus on Integrations, HR Service Delivery, Customer Service Management, IT Operations Management, IT Asset Management, IT Business Management, and IT Service Management.
- Iceberg Networks, led by CEO Ken McPherson, is the 2021 ServiceNow Global Premier Partner of the Year and 2021 Americas Premier Partner of the Year, and brings Security Operations Management and Governance, Risk & Compliance / Integrated Risk Management to the combined entity.
- The overall Highmetric business now claims to be the world's largest pure-play ServiceNow partner. The combined business has 300 team members with expertise across Customer Service Management, HR & Employee IT Service Management, and IT Operations Management. Ahead of the M&A moves, Highmetric was named ServiceNow's Americas Partner of the Year in 2021 for its Customer Service Management offering.
Three ServiceNow Partners Merge: Executive Perspectives
In a prepared statement about the deals, Gryphon Managing Director Gabe Stephenson said:
"Gryphon is extremely excited to be partnering with the talented teams at Highmetric, Fishbone, and Iceberg. We have a well-developed thesis around the power of ServiceNow to optimize digital transformation workflows and believe that these are the best three businesses for us to initially invest behind to create a differentiated market leader in this space."
Alex Earls, deal partner and head of Gryphon's Business Services Group, added:
"This investment is a strong match with our past track record and we are looking forward to supporting management to rapidly scale the business organically and through additional strategic acquisitions."
New Highmetric CEO Matt Stoyka concluded:
"The combination of Highmetric, Fishbone Analytics, and Iceberg Networks represents a complete and total commitment to the ServiceNow ecosystem and to our customers. Our customers have told us they need a full-service firm with domain expertise enhanced by deep industry focus. We are primed and ready to work closely with our clients and ServiceNow to introduce powerful workflow solutions that drive meaningful business results. With the support of Gryphon Investors, we will also continue to invest heavily in the growth of our amazing and talented team. It is a privilege to be part of this transformation and to have the ability to influence and positively impact our customers, our partners, and our communities."
Multiple business and financial experts advised on the deals. Key deal advisors included:
- Guggenheim Partners and 7Mile Advisors served as financial advisors to Gryphon;
- Kirkland & Ellis served as Gryphon's legal advisor;
- Jefferies served as the exclusive financial advisor to Highmetric;
- Miles & Stockbridge P.C. served as Highmetric's legal counsel;
- Transact Capital Partners LLC served as the exclusive financial advisor to both Fishbone Analytics and Iceberg Networks; and
- Labarge Weinstein as legal counsel to Fishbone Analytics and Iceberg Networks.
ServiceNow Partner Mergers and Acquisitions: The Deal List Grows
M&A activity among ServiceNow partners has been extremely strong. Among the reasons: ServiceNow’s IT service management (ITSM) software has emerged as a standard for co-managed services in the enterprise. To ride that wave, ServiceNow partners are acquiring one another to achieve scale, expertise and regional reach.