Systems Maintenance Services (SMS) and Curvature, two formidable independent third-party IT services vendors, have merged in a deal that creates a $500 million market leader.
The deal, which is slated to close by the end of February, will merge $250 million IT services and lifecycle maintenance provider SMS and $288 million third-party IT services and networking hardware provider Curvature. Financial terms of the deal were not disclosed.
The deal creates an IT asset lifecycle services powerhouse with 2,000 employees and a broad range of third-party IT data center services and hardware offerings that include server, storage and networking.
"Together, we are category-killing,” said Mike Sheldon, CEO of Santa Barbara, Calif.-based Curvature, No. 84 on the 2016 CRN Solution Provider 500, in an interview with CRN.
Sheldon will be president and chief commercial officer of the combined company which he says will be more than five times larger than its closest competitor, Cleveland-based Park Place. Park Place two months ago acquired Ardent Support Technologies.
The new company, which will initially be called SMS | Curvature with specific branding decisions to be made at a later date, expects to make significant investments in sales and marketing.
The deal is being backed by private equity behemoth Partners Group, a global powerhouse with more than $57 billion in assets under management.
Partners, which had acquired SMS just five months ago, will own a majority share of the combined company.
John Wozniak, CEO of Charlotte, N.C.-based SMS, said the deal pairs two complimentary companies into a IT services leader that "falls in line with the growth strategy" laid out by Partners Group.
“How well each company fits into the other’s strategic strategy is incredibly rare," said Wozniak, who will become CEO of the combined company. "The strategic attributes were the exact direction we are looking to move into."