"Television is a medium because anything well done is rare."
-Fred Allen
November 10,2020
Trace3 Acquires Groupware Technology
Financial Information
- Not Disclosed
Transaction Update
- HIG Capital-owned solution provider Trace3 announced today that it had acquired fellow California-based solution provider Groupware Technology
- Both companies are recognized as major technology providers and routinely appear on industry listings — Trace3 is No. 39 on the 2020 CRN Solution Provider 500 list while Groupware is No. 83
- Financials for the transaction were not disclosed, but Trace3 previously reported revenue of $1.2B in 2018 and Groupware revenue was reported earlier this year at $310 million
martinwolf Analysis
- Broadening the Portfolio: Trace3 and Groupware complement each others’ solution sets — Trace3 brings advanced technology offerings such as cybersecurity and data intelligence, while Groupware strengthens Trace3’s infrastructure and cloud capabilities
- Two Growth Strategies Come Together: Groupware’s growth has historically been all organic, while Trace3 two years ago acquired Grand Rapids-based solution provider Data Strategy (and itself was acquired by HIG Capital in June 2017). Going forward, expect to see more M&A as Trace3 continues to build out its geographic and vertical presence
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Products of Strong Leadership: Groupware CEO Mike Thompson is an industry stalwart, and Trace3 CEO Rich Fennessy has a track record of success (martinwolf has worked with him at Insight and profiled him in our Executive Perspective publication). Both will continue to drive growth as part of the larger organization — Groupware’s leadership team will continue to oversee the business locally in the Northern California region.
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M&A Picks up the Pace: While global deal volume remains lower year-over-year, activity is quickly resuming as economies learn to live with and adapt to the virus. Expect this trend to accelerate with the US presidential election concluded and as vaccines approach.
For more information about this transaction, click here to read the press release.
martinwolf was not the advisor in this transaction.
