"The secret to change is to focus all your energy not on fighting the old but on building the new."
-Socrates
January 06,2020
Computer Design & Integration LLC Enters Into Strategic Partnership
Financial Information
- Not Disclosed
Transaction Facts
- IT cloud, data center and managed service provider Computer Design & Integration LLC (CDI) announced today that it has entered into a strategic partnership with middle-market private equity firm One Equity Partners (OEP). Financial details were not disclosed.
- The funding from OEP will allow CDI to make major investments in its public cloud, security, application re-platforming, DevOps, and IT service and operations management, according to the press release.
martinwolf Analysis
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Focusing In: In October of 2018 CDI sold its managed services’ small and midsize clientele to WorkSmart which in retrospect was the precursor to this transaction. CDI has a history of focusing in on desirable markets: in 2015 it spun off its data center unit to hone in on its cloud and managed services.
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Progression To Hybrid-Cloud Provider: The company’s progression to the cloud led it straight to private equity buyers, and for good reason. This partnership with OEP solidifies its hybrid-cloud commitment, where there’s still room for aggressive growth. Gartner predicts the cloud services market to grow 17 percent in 2020 to a total of $266.4 billion.
Technology Spending Spree Ahead?: One Equity Partners (OEP) recently completed fundraising for its seventh fund, One Equity Partners VII, L.P. with $1.75 billion in total capital commitments, its largest fund to date. OEP has a history of spending its funds on cross-border technology, with investments in IT companies such as Crayon IT, digital transformation specialist Orion, Allegro MicroSystems and SAP partner Rizing, LLC.- Welcome to 2020: We could see an influx of PE-partnerships with this M&A criteria in 2020. Led by president Eric Bakker (a recognized IT leader) and president of sales Rich Falcone, CDI, #77 on CRN’s solution provider 500 list, has developed close partnerships with several major cloud players. Private equity is a smart play for these types of hybrid solution providers — especially now while the market is in desperate need of consolidation.
Technology Spending Spree Ahead?: One Equity Partners (OEP) recently For more information about this transaction, click here to read the press release.
martinwolf was not the advisor in this transaction.
