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"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
  • 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.
  • 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.
For more information about this transaction, click here to read the press release.
martinwolf was not the advisor in this transaction.
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