Financial Information

• Not Disclosed

Transaction Details

• Clayton Dubilier & Rice (CD&R) and BC Partners announced on April 2, 2024, that they have entered into a definitive agreement under which CD&R will acquire a majority ownership of Presidio.
• Funds affiliated with BC Partners will retain minority ownership interest.
• The transaction is expected to close in the second quarter of 2024.
• Upon completion of the acquisition, CD&R Operating Partner Bill Berutti will serve as Chair of Presidio’s Board of Directors.
• “If you look at Presidio’s technology stack and portfolio they have a lot of competitive advantages. They are important to the vendors and their customers. Their services are what tie the two together. The fact that they have a meaningful and robust cloud offering helps them with customers and vendors,” says Marty Wolf. Link to article available here.

martinwolf Analysis

• Expanding Capabilities: CD&R noted the acquisition will allow both companies to benefit from their strengths, with CD&R bringing their technology and distribution experience to an already sound Presidio portfolio offering including software, cloud, and managed services to more than 6,660 customers.
• Ownership History: Presidio has had several ownership changes since American Securities first bought the company in 2011. Apollo Management acquired Presidio in 2014 and then Presidio went Public in 2017. A couple years later, BC Partners took the firm private in a $2.1B deal. Now Presidio changes hands again to CD&R in a $4B deal.
• Value Creation: BC Partners strategized and initiated their refined growth plan after acquiring Presidio, which had the firm focusing on developing a leading cloud services business and expanding internationally. Working on tuning these key areas of the business allowed for growth within the key metrics that drive value.
• Multi Cloud Dominance: This transaction further emphasizes the current trend where investors are looking to invest in companies that have multi-cloud and hybrid-cloud service capability.
• Expect more larger deals in the next 12-24 months as interest rates stabilize, public markets trade at multiyear highs and vendors consolidate.

martinwolf was not the advisor in this transaction.