An archive of past spotlight issues.


The martinwolf team tracks noteworthy mergers and acquisitions, and offers
commentary on issues that impact our industry.

decor decor
“Our team is proud and excited to now partner with American Securities as we embark on our next phase of growth.”

-Rich Fennessy, Chief Executive Officer of Trace3

H.I.G. Capital Announces Sale of Trace3

Financial Information
  • Not Disclosed
Transaction Details
  • H.I.G. Capital announced that one of its affiliates has entered into a definitive agreement to sell Trace3, a premier provider of IT solutions and services, to affiliates of American Securities.
  • Financial terms of the transaction are not being disclosed, but the press release cites Trace3 revenue of $1.4 billion.
  • The transaction remains subject to customary closing conditions.
martinwolf Analysis
  • Large-Scale Deal: This transaction is one of the largest system integrations deals in recent memory. While financial terms of the deal were not disclosed, the transaction is rumored to have a lofty multiple.
  • Rich in Value: Trace3 CEO Rich Fennessy has a track record of strong leadership and value creation over a short period of time. (martinwolf has worked with him at Insight and profiled him twice in our Executive Perspective publication. Click here to read: 2017 and 2019).
  • Dynamic Dealmaker: H.I.G. Managing Direction Kevin Van Culin continues to be active in the VAR and system integration space. Van Culin’s ability to understand value and deals within this particular sphere has proven to be a difference maker for H.I.G.
  • Strong Partner for IT-Services: Miami-based H.I.G Capital is a global alternative investment firm with $45 billion of equity capital under management and a strong record of success in the IT-services space. Following H.I.G.’s 2017 investment in Trace3, the California-based company tripled revenues to $1.4 billion through a series of strategic growth initiatives and acquisitions.
  • Strategic M&A Expansion: Trace3 was able to expand rapidly by leveraging M&A activity. Following H.I.G.’s 2017 investment, Trace3 merged with fellow H.I.G.-owned company Data Strategy in 2018. The combined firm then acquired Groupware Technology in 2020 to expand Trace3’s market position in Northern California and Arizona.

For more information about this transaction, click here to read the press release from H.I.G. Capital.

martinwolf was not the advisor in this transaction.

previous post Back to Articles next post

24 Apr 2024

Celestica (NYSE: CLS) to Acquire NCS Global from Heritage Holding

Financial Information Enterprise Value: $36M (and a possible earnout payment should certain post-closing financial conditions be met) Transaction Details Celestica has entered into a definitive agreement to acquire NCS Global, a US-based IT infrastructure and asset management business. The transaction is expected to close in May 2023 or earlier, subject to satisfaction of customary closing...

02 Apr 2024

CD&R to Acquire Presidio from BC Partners

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...

06 Feb 2024

NWN Carousel acquired by American Securities

Financial Information Revenue: Approx. $900 million Enterprise Value: N/A Transaction Details NWN Carousel announced a transition of ownership from New State Capital Partners to affiliates of American Securities. This transition represents the success of significant investment, organic growth, M&A execution, operational excellence and innovation under ownership of New State Capital Partners. NWN Carousel developed a...