"If you just focus on the smallest details, you never get the big picture right."
-Leroy Hood
October 23,2015
Millstein & Co. Acquires Atlantix from Presidio
martinwolf Transaction Analysis
Financial Information
- Not Disclosed
Transaction Facts
- IT and telecom equipment reseller Atlantix Global Systems announced yesterday that it had been acquired by Millstein & Co., a private equity firm specializing in investments in the financial services, technology, industrial, consumer and technology-enabled business services sectors.
- Atlantix was previously a component of Presidio, which acquired Atlantix in March 2007 in its acquisition of solution provider Solarcom. Solarcom was one of a series of acquisitions by Presidio that were estimated by CRN at the time as elevating the company to $800 million.
- Since its acquisition by Presidio, Atlantix has built up its offerings and vendor partnerships, expanding into position 155 on CRN’s SP500 list. Presidio, currently ranked No. 21 on the SP500 list, has been expanding away from product reselling and toward its services offerings.
Focusing on Core Competencies
- Pruning Non-Core Segments: In a brief statement announcing the transaction, Presidio CEO Bob Cagnazzi stated that “Atlantix’s business is not core to Presidio.” While the reselling business is largely refresh-centric, managed services provides a steady inflow of predictable recurring revenue.
- Building Scale in a Fragmented Market: Millstein has experience in the IT solution provider market, having bought DLT Solutions in a martinwolf transaction this January. By providing specialized resources and guidance, Millstein can help Atlantix achieve significant scale and capitalize on what is today a fragmented market.
- Private Equity Shopping Spree Continues: This deal is the most recent example of increased attention from private equity players on the solution provider space. In addition to the earlier purchase of DLT, this year has seen Kelso acquire Sirius, Columbia Partners acquire MTM, Blackstone and Carlyle submit a bid for NCR, and several other examples of IT supply chain companies turning to private equity to achieve an exit.
For more information about this transaction, click here to read the press release.
martinwolf was not the advisor in this transaction.
