"The secret of business is to know something no one else knows."
-Aristotle
November 30,2015
Park Place Acquired by GTCR
Financial Information
- Not Disclosed
Transaction Facts
- Park Place Technologies, Inc., a provider of data center maintenance services, announced today that it had been acquired by GTCR, in a partnership with CEO Ed Kenty and the Park Place management team.
- Founded as a hardware reseller in 1991, Park Place is today a Third-Party Maintenance company (TPM) offering post-warranty maintenance and support solutions for storage, server and networking equipment. The company has more than 330 employees and today serves more than 5,000 customers over 70 countries.
- This transaction follows a 2012 recapitalization by WestView Capital Partners and the company’s management team. WestView has been active and successful in the managed services space, selling OneNeck to TDS in 2011 for a strong return. martinwolf profiled WestView General Partner Matthew Carroll in 2014.
- GTCR is a leading private equity firm founded in 1980 that has invested more than $12 billion since inception. GTCR-backed Zayo Group Holdings (NYSE:ZAYO) announced last week that it was purchasing Allstream Inc. from Manitoba Telecom Services Inc.
Great Flexibility Means Great Opportunity
- Facilitating the Rise of the Cloud: Park Place offers services and support focused on networking and data centers, two verticals that are in high demand as companies look to shift to the cloud. While OEMs still provide the majority of post-warranty support, there is a growing market for alternatives that can provide more cost-effective solutions while extending the life of existing products.
- All-in-One Solution: Companies with multi-vendor environments often turn to
TPM companies thanks to their greater flexibility in coverage. Park Place supports EMC, Dell, IBM, Cisco, Hitachi, NetApp, HP, Sun/Oracle and other hardware equipment. - Broad Appeal: Private equity investors are also seeing the appeal, backing numerous companies at rich multiples. This transaction is only the latest investment in a TPM company in recent years following THL’s investment in Systems Maintenance Services in 2010 and Pamlico Capital’s investment in Service Express, Inc. in July 2015.
For more information about this transaction, click here to read the press release.
martinwolf was not the advisor in this transaction.
