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March 1, 2012

Transaction analysis
Presidio Networked Solutions, Inc acquires BlueWater Communications Group

 

Financial Overview:

  • 2011 Revenue Estimate: $250M (VAR500 Rank #114)
  • 2010 Revenue Estimate: $165M (VAR500 Rank #268)

Terms of the transaction have not been disclosed

 

martinwolf Analysis:

  • Presidio, which employs 2,000 IT professionals and offers a range of managed and cloud services, hosted infrastructure and hosted backup and recovery, has announced it has acquired BlueWater, a roughly $250M solution provider focusing on unified communications, cloud computing, and data center technologies.
  • BlueWater CEO Bob Cagnazzi will fill the CEO position at Presidio which has been vacant since Joel Schleicher, founder and CEO, was terminated after American Securities acquired the company. Other changes to the existing BlueWater and Presidio teams aren't expected, as much of its original management team and former top executives of previous acquisition companies will remain.
  • While primarily a product sales organization, Presidio will be looking to leverage BlueWater's nascent managed services practice that offers voice and data monitoring for customer networks and BlueWater will gain from Presidio's size and scope to capitalize on its large customer base.
  • This is Presidio's second large move, following their Nov 2011 acquisition of INX, Inc last year.
  • In the space, higher value-add solution providers are consolidating as noted by Datalink Corp's (DTLK) acquisition of Midwave in Oct 2011 and Strategic Products and Services acquisition of Imagine Technologies in Dec 2011.
  • The costs for solution providers to maintain certifications and experienced staff are growing while manufacturers are pushing to reduce their number of authorized channel partners. This will place greater pressure on smaller local solution providers.
  • martinwolf expects traditional value-added resellers (VARs) to continue to embrace managed services plays and the market should see a continuing trend of consolidation as cloud and MSP players look to gain scale or join a partner that has scale.

 

Please click here to read the press release.

martinwolf was not the adviser in this transaction.  

 

To learn more about this transaction or our firm, contact Tim Mueller tmueller@martinwolf.com 

About martinwolf    

 

Based in Silicon Valley, martinwolf is a leading middle market M&A Advisory focused on companies with services-based business models. Since 1997, our team has completed more than 115 transactions in six countries. We are a five-year member of the Merrill Lynch PS Referral Network, and were selected as ICICI Bank's (India's leading private bank) exclusive strategic partner for acquiring U.S. IT companies. martinwolf is a member of FINRA and SIPC. For more information, visit www.martinwolf.com.

   

December 1, 2011

Softchoice Corporation (TSX: SO) announced it has it has fulfilled its regulatory requirements under the Competition Act and has now completed the acquisition of substantially all of the assets of UNIS LUMIN, one of Canada's most highly regarded Cisco networking and managed services companies. Softchoice was represented by martinwolf | M&A Advisors. The acquisition strengthens Softchoice's professional services capabilities while providing the technology foundation to support the Company's future cloud offerings.

Please click here to view the announcement.   

 

September 30, 2011

SPS, a leading Unified Communications Provider, announced that Court Square Partners has made an investment in the company. martinwolf | M&A Advisors represented SPS in this transaction. SPS is a premier unified communication services integrator, ranked 131 on the 2011 VAR 500 list with 2010 sales of $143 million. Court Square is a $4B+ New York-based PE Group, with more than 150 lifetime investments.  

Please click here to view the announcement. 

      

September 20, 2011  

Accel-KKR, a technology-focused private equity investment firm, announced that it had taken a majority stake in Infinisource. Infinisource is a leading benefits administration technology and services company. martinwolf | M&A Advisors represented the seller in this transaction.  

Please click here to read more.    

         

martinwolf | M&A Advisors 2012    

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