decor decor
"If you are not willing to risk the usual, you will have to settle for the ordinary."

-Jim Rohn

April 08,2019

CD&R to Acquire Majority Stake in Sirius Computer Solutions

martinwolf Transaction Analysis
Financial Information
  • Not disclosed
Transaction Facts
  • IT solutions integrator Sirius Computer Solutions announced Friday an agreement with private investment firm Clayton, Dublier & Rice (CD&R) to acquire a majority interest in Sirius. Current majority owners Kelso & Co. will exit their investment at the conclusion of this transaction.
  • Financial details of the transaction were not disclosed, however, Sirius reported in the press release annual gross sales of $3.5 billion.
  • No changes are expected in Sirius’s existing management structure, though CD&R partner and former SunGard Data Systems CEO Russ Fradin will serve as chairman of the Sirius board of directors.
  • The deal is expected to close in Q2 of 2019, subject to regulatory approvals and other customary closing conditions.
martinwolf Analysis
  • A Pattern of Successful Partnerships: CD&R is the latest in a line of partners for Sirius – a 2006 investment by Thoma Bravo helped the company grow from $600M to $1.6B in annual revenue by 2015, while the partnership with Kelso has taken it to $3.5 billion today.
  • Buy and Build: Key to Sirius’s growth strategy is smart M&A, financed through its partners. Its most recent deal, the acquisition of Forsythe Technology Inc., added nearly $1 billion in sales and nearly 1,000 employees.
  • Smart Money: CD&R is a storied name in the PE industry and was founded in 1978 – two years before Sirius. It has invested over $28 billion in 84 companies since inception. Its experience with tech-enabled services businesses, particularly in the healthcare space, will benefit Sirius as they pivot toward healthcare and security services offerings.
  • Looking Ahead: Today, Sirius is one of the largest solution providers thanks to its history of organic and inorganic growth. Looking forward, both Sirius and CD&R expect to continue these trends – particularly in high-value focus areas like managed services, cloud, and security.
For more information about this transaction, click here to read the press release.
martinwolf was not the advisor in this transaction.
previous post Back to Articles next post

09 May 2023

DynamicsCon LIVE Conference Information

martinwolf will be attending the DynamicsCon LIVE conference in Scottsdale May 22-25. Book a confidential one-on-one meeting with Michael Rosholt to learn about market trends, current valuations, and how to prepare for a sale.    DynamicsCon attendees are also eligible for a complementary M&A Readiness Scorecard from martinwolf.   Contact Michael Rosholt at mrosholt@martinwolf.com to...

22 Feb 2023

How Microsoft Channel Partners Can Command High Valuations

In today’s rapidly changing ecosystem, simple organic growth doesn’t give Microsoft Channel Partners long-term competitive advantage.   During the last five years, Microsoft Channel Partners have commanded high valuations due to strong and sustainable business models, as well as a track record of profitability. Most were small mid-market businesses that had to decide to be...

31 Jan 2023

Rising Interest Rates Chill Private Equity Pace

After a year of strength on the private equity front, 2022 is now in the rearview mirror and industry professionals anticipate a downgrade in performance for the coming year.   Despite the fluctuations of the past few years, private equity has withstood the challenges relatively well. However, in certain areas such as exit activity and...