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BC Partners To Take Presidio Private with $2.1B Acquisition

martinwolf Transaction Analysis
*Financial Information
  • EV: $2.1 billion
  • EV/REV LTM: 0.70x
  • EV/EBITDA LTM: 9.67x
Transaction Facts
  • IT Solutions Provider Presidio, Inc. (NASDAQ: PSDO) announced today its definitive agreement to be acquired by London-based private equity firm BC Partners in an all-cash transaction valued at $2.1 billion.
  • According to the press release, Presidio stockholders will receive $16.00 in cash for each share of Presidio common stock they own, a 21.3 percent premium over Presidio’s closing stock yesterday.
  • AP VIII Aegis Holdings, L.P., which owns approximately 42 percent of the outstanding shares of Presidio common stock, has entered into a voting agreement with BC Partners to vote its shares of Presidio common stock in favor of the merger, subject to conditions outlined in the press release.
  • The deal is expected to close in Q4 of 2019 subject to customary closing conditions.
  • Presidio shares were up 21.72 percent after the deal was announced.
martinwolf Analysis
  • PE Roots: BC Partners is the latest of a series of financial partners for Presidio — a high-profile list that includes Columbia Capital, American Securities and Apollo GM (NYSE: APO). In a January 2016 Executive Perspective interview with martinwolf, Presidio CEO Bob Cagnazzi credited the company’s PE partners with providing both strategic guidance and customer connections.
  • Strength In IT: BC Partners holds assets in 108 companies spanning 17 countries and has a combined enterprise value of $151 billion. It has a history of purchases in the IT space, including the 50 percent stake it recently bought in software company Advanced, and its purchase in July 2018 of software company NAVEX Global. Not only does this give solutions-focused Presidio an avenue into some of the other sub-sectors of the IT market, but it allows Presidio the opportunity to potentially expand its offerings and geographic footprint.
  • Two for Two: Presidio CEO Bob Cagnazzi joined the company in 2012,  following Presidio’s acquisition of his IT infrastructure services provider company BlueWater Communications Group. He built BlueWater from the ground up — growing the company to $279 million over a five year period. Cagnazzi has demonstrated experience building and scaling large businesses. Since Cagnazzi joined the company in the BlueWater acquisition in 2012, Presidio has acquired numerous companies, including INX, Sequoia Worldwide, Netech Corporation, Emergent Networks, and Red Sky Solutions. Presidio now has over 60 offices, 2,800 employees and $2.9 billion in LTM revenue.
For more information about this transaction, click here to read the press release.
* Financial information from the press release and Factset (LTM as of March 31, 2019). 
martinwolf was not the advisor in this transaction.
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