"Mainline has become a clear industry leader and is incredibly well positioned to continue to drive business outcomes for our clients as the technology landscape evolves. I am very excited to partner with H.I.G. and look forward to investing in the significant growth opportunities which can take the company to new heights."
-Mainline CEO Jeff Dobbelaere
December 05,2023
H.I.G. Capital Completes Acquisition of Mainline
Financial Information ($USD)
- Purchase Price: Not Disclosed
- EBITDA: Not Disclosed
Transaction Details
- H.I.G. Capital, a leading global alternative investment firm with $59 billion of capital under management, has announced one of its affiliates has completed the acquisition of Mainline Information Systems.
- Mainline Information Systems, headquartered in Tallahassee, FL, is a leading IT solutions provider with revenues in excess of $1 billion. Mainline serves the infrastructure needs of blue-chip enterprise customers as well as designing and implementing custom IT solutions and providing associated professional and managed services.
- H.I.G. was attracted to Mainline based on its technical expertise and value it brings to OEM partners. H.I.G. plans to further accelerate Mainline’s growth potential through both organic and inorganic initiatives.
- H.I.G. was advised by Guggenheim Securities LLC, UBS, and Latham & Watkins LLP. Mainline was advised by Highlander Advisors and King & Spalding.
martinwolf Analysis
- Continuing Growth: Mainline Information Systems has been built up over the past 14 years from a one-time primarily IBM shop into a $1 billion plus cloud best-of-breed solution powerhouse. The backing of H.I.G. will enable Mainline to continue to capitalize on their historical growth as well as capture growth opportunities through further acquisitions.
- Industry Expertise: This acquisition represents further activity within the IT Solution Provider sector for H.I.G. as they recently completed a growth equity investment with General Datatech in 2022 as well as their recently sale in 2021 of Trace 3 in which they tripled revenues to $1.4 billion since they acquired them in 2017.
- Leadership Change: In early 2022, Mainline removed former President and CEO John McCarthy, and replaced him with Jeff Dobbelaere. John spent 13 years building up Mainline into the market leader it is today, and the switch disrupted the sale process. While at Mainline, McCarthy dramatically improved its selling efforts by leveraging his EMC background.
Read the original press release published by H.I.G. Capital here.
martinwolf was not the advisor in this transaction.
