BC Partners Ups Offer for IT solution provider after new suitor emerges
IT solution provider Presidio has become the subject of an apparent bidding war, with private equity firm BC Partners upping its offer for the New York company after another potential buyer emerged.
The Lowdown: Despite the interest from another company, Presidio’s board of directors this week reiterated its support of BC Partners and recommended that the company’s stockholders approve the amended deal.
The Details: BC Partners announced in August that it was buying Presidio, which partners with such IT stalwarts as Dell EMC and Cisco Systems and includes VMware Cloud on Amazon Web Services (AWS) as part of its data center modernization practice, for $2.1 billion. As part of the deal, stockholders would receive $16 per share.
However, during the “go shop” period following the announcement that closed Sept. 23, another suitor submitted a proposal to buy Presidio, according to the channel company. In response, BC Partners announced this week that it’s upping its offer by 3.75%, to $16.60 per share.
Background: Presidio, which currently is owned by funds affiliated with Apollo Global Management, is a $2.8 billion company with 2,800 employees – including 1,600 technical engineers – in more than 60 offices in the United States. The company specializes in digital infrastructure, business analytics, cloud, security, and emerging solutions and has almost 7,000 customers in the midmarket, enterprise, and government spaces. Last year, the company was put on the list of the top 100 managed security service providers (MSSP) compiled by IT consultancy After Nines.
The Buzz: “We believe this transaction will provide immediate and substantial value to Presidio stockholders, while providing us with a partner that can add strategic and operational expertise to our business, with a focus on executing our long-term strategy,” Presidio CEO Bob Cagnazzi said in August after first announcing BC Partners’ plans to buy the company.
“Over the last several years, Presidio has become the leader in designing, developing, deploying, and managing agile secure IT infrastructures that drive real business value for thousands of commercial and public-sector entities across the United States,” said Fahim Ahmed, lead deal partner at BC Partners, in August. “We look forward to supporting the company in its next phase of growth.”
“Presidio fits squarely with our key investment priorities,” Raymond Svider, partner and chairman of BC Partners, said in August. “Its markets benefit from secular growth, as IT systems and networks have become increasingly complex. It’s well positioned as a leader in a fragmented industry, offering scope for further expansion. We’re excited to partner with Bob and his team to support the future growth of the business.”