Presidio Acquired By Private Equity Firm Apollo Global Management
Presidio ownership has changed, the company announced Monday, with an agreement by Apollo Global Management to acquire the solution provider from American Securities.
More specifically, affiliates of Apollo Global Management, a global alternative investment manager, have entered into a definitive merger agreement to acquire the solution provider, No. 22 on CRN's 2014 SP500 list, from the affiliates of American Securities that currently own it.
Terms of the deal were not disclosed.
American Securities, a New York City-based private equity firm, has owned a "significant investment" in Presidio since April 2011. At that time Presidio was worth more than $1.3 billion. Reuters estimated in May that Presidio was valued at $1.5 billion with annual revenues around $2.3 billion and earnings of $180 million.
The acquisition news comes just a few months after reports emerged about a possible Presidio sale or Initial Public Offering (IPO). Reuters reported in May that Presidio had hired Barclays Plc and Credit Suisse Group AG to explore the company's sale or IPO options. No parties commented at the time of the report.
Presidio CEO Bob Cagnazzi said in a statement that the American Security partnership has allowed the company to expand over the past three and a half years, including through its acquisitions of BlueWater Communications and INX.
"At the same time, we are excited to announce this transaction with Apollo, which has a proven track record of investing in market-leading businesses, and we look forward to partnering with them to further develop and scale Presidio's franchise," he said in the statement.
Apollo Global Management Partner Matthew Nord said the company also looks forward to continuing the growth trajectory started by American Securities.
"We are pleased to be partnering with [CEO Bob Cagnazzi], his talented management team and Presidio's outstanding workforce. Together, they have successfully built Presidio into a leader in the IT services arena, and we look forward to supporting them in their ongoing growth initiatives," Nord said in a statement.
Apollo Global Management and its subsidiaries focus on investments primarily in the chemical, commodities, consumer and retail, distribution and transportation, financial and business services, manufacturing and industrial, media, and packaging and materials industries, as well as in satellite and wireless businesses. As of Sept. 2014, its investments total $164 billion across private equity, credit and real estate.