September 17,2018

Tailwind Capital Acquires Core BTS

martinwolf Transaction Analysis

Financial Information*

Transaction Facts

Middle market private equity firm Tailwind Capital announced today its acquisition of Core BTS, a technology consulting firm focused on networking, collaboration, security and data center solutions.
According to the press release, Paul Lidsky, former CEO of Datalink, joined Core BTS as Chairman of the Board concurrent with the closing of the deal. Edison Peres, former Senior Vice President at Cisco Systems, will remain on the company’s Board post-close and will continue to play an integral role in shaping the company’s growth strategy.

A History of Growth through M&A

Strong Support: Convergence Technologies (CTi), backed by its principal investor Founders Equity, is the parent holding company of Core BTS. The company has a history of acquiring profitable IT systems integrators specializing in data center, cloud services, collaboration technologies, and security and compliance.
Recurring Theme: Due to the availability of private equity cash, consolidation in the channel has accelerated. As a result of more financial and strategic direction, many solution providers have been able to successfully make the shift from being primarily a hardware reseller to becoming an all-around managed services player.
Long-Term Vision: Tailwind Capital has been active in strategic investments and acquisitions. With over $3.6 billion of equity capital in management, the firm has invested in 38 portfolio companies and more than 65 add-on acquisitions since its founding. Last February, Tailwind acquired a majority stake in AST Corporation, thereby making AST the largest pure play Oracle cloud systems integrator in the world (martinwolf served as strategic advisor to AST Corporation).

For more information about this transaction, click here to read the press release.

*Financial information from the press release.

martinwolf was not the advisor in this transaction.

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