M&A Deal Summary

ABRY Partners and Alvarez & Marsal Capital Partners Acquire NexusTek

On December 13, 2017, private equity firms ABRY Partners and Alvarez & Marsal Capital Partners acquired information technology company NexusTek from Harbert Mezzanine Capital and Tenth Street Capital

Acquisition Highlights
  • This is ABRY Partners’ 26th and Alvarez & Marsal Capital Partners’ 1st transaction in the Information Technology sector.
  • This is ABRY Partners’ 104th and Alvarez & Marsal Capital Partners’ 7th transaction in the United States.
  • This is ABRY Partners’ 6th and Alvarez & Marsal Capital Partners’ 1st transaction in Colorado.

M&A Deal Summary

Date 2017-12-13
Target NexusTek
Sector Information Technology
Buyer(s) ABRY Partners
Alvarez & Marsal Capital Partners
Sellers(s) Harbert Mezzanine Capital
Tenth Street Capital
Deal Type Recapitalization

Target

NexusTek

Greenwood Village, Colorado, United States
NexusTek is a provider of regional IT support and outsourcing including help desk, cloud services, VoIP, cyber security services, server monitoring and microsoft dynamics 365 CRM services. From managed IT services to cloud solutions and customized business software implementations, NexusTek employs top talent, offers personalized attention, and brings nearly 22 years implementing technology best practices for companies across Arizona and the region. NexusTek was founded in 1996 and is based in Greenwood Village, Colorado.

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Buyer(S) 2

Buyer

ABRY Partners

Boston, Massachusetts, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1989
PE ASSETS 12.8B USD
Size Mega
Type Sector Focused
DESCRIPTION

ABRY Partners is a media and communications focused private equity investment firm. Specific areas of interest include television, publishing, convention/trade shows, for-profit training, couponing, monitoring services, telephone companies, communications towers, music libraries, database providers, wireless communications, and in-store advertisers. ABRY can provide both equity and mezzanine capital, typically committing $20 to $200 million of equity or $15 to $50 million of mezzanine capital per transaction. Prospective transaction situations include buyouts, expansion financings, platform acquisitions, consolidations, and recapitalizations. ABRY Partners was formed in 1989 and is headquartered in Boston, Massachusetts.


DEAL STATS #
Overall 119 of 175
Sector: Information Technology M&A 26 of 38
Type: Recapitalization M&A Deals 11 of 15
State: Colorado M&A 6 of 7
Country: United States M&A 104 of 145
Year: 2017 M&A 4 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2017-12-06 BTG

Morganville, New Jersey, United States

BTG is a managed private cloud service provider that maintains a singular focus on supporting enterprise workloads and IT services. The company empowers its small, mid-market and enterprise customers with agile, cutting-edge technology coupled supported by a veteran team whose expertise includes cloud-based desktops and storage solutions, SaaS, IaaS, remote monitoring and end-user IT. BTG is perennially ranked as a Talkin’ Cloud Top 100 Cloud Company, has twice been honored with the Cloudys Award for the Most Innovative Cloud Provider, and is a four-time winner of Channel Partners 360 Business Value Award. BTG has also been honored as an MSPmentor 250 managed services provider. BTG was founded in 2007 and is based in Morganville, New Jersey.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-12-20 Broadcast Electronics

Quincy, Illinois, United States

Broadcast Electronics, Inc. is a provider of equipment and software solutions to the radio broadcast market.

Sell -
Buyer
DESCRIPTION

Alvarez & Marsal Capital Partners (A&M Capital) is a private equity investment firm affiliated with financial advisory and due diligence provider Alvarez & Marsal. A&M Capital looks to invest $20 to $75 million in North American and Western European companies valued up to $750 million. The Firm looks for control situations where it can leverage its operational expertise. Sectors of interest include general industrial/manufacturing, consumer, retail, healthcare, business services, transportation, and energy. Alvarez & Marsal Capital Partners was established in 2011 and is based in Greenwich, Connecticut.


DEAL STATS #
Overall 8 of 33
Sector: Information Technology M&A 1 of 3
Type: Recapitalization M&A Deals 1 of 3
State: Colorado M&A 1 of 1
Country: United States M&A 7 of 24
Year: 2017 M&A 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2017-06-28 SPhere Group

Paris, France

SPhere Group is an independent manufacturer and seller of refuse bags, freezer bags, plastic films and food papers, aluminium food trays and foil rolls and industrial films. SPhere was founded in 1976 and is based in Paris, France.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2018-01-01 GS Foods Group

Carlsbad, California, United States

GS Foods Group is a specialized food service distribution company including its independent subsidiaries Gold Star Foods and Good Source Solutions. The company focuses on the education, corrections, non-profit, business & industry, and healthcare industries, and serves more than 10,000 customers nationwide, including the delivery of 6.5 million healthy, high-quality meals to students each day. GS Foods Group is based in Carlsbad, California.

Buy -

Seller(S) 2

DESCRIPTION

Harbert Mezzanine Capital is the junior capital investment arm of asset manager Harbert Management Corporation. Harbert Mezzanine looks to invest $3 to $15 million of subordinated debt to support growth needs, acquisitions, recapitalizations, or management buyouts of mid-sized companies throughout the US. Harbert Mezzanine Capital is based in Nashville, Tennessee.


DEAL STATS #
Overall 1 of 12
Sector: Information Technology M&A 1 of 3
Type: Recapitalization M&A Deals 1 of 1
State: Colorado M&A 1 of 1
Country: United States M&A 1 of 12
Year: 2017 M&A 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2017-09-06 i3 Verticals

Nashville, Tennessee, United States

i3 Verticals is a technology and integrated payments provider for a range of industry verticals throughout the United States. i3 Verticals was founded in 2012 and is based in Nashville, Tennessee.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2018-01-01 Urgent Care Group

Brentwood, Tennessee, United States

Urgent Care Group is focused on taking care of patients by providing affordable and accessible care to help them Get Better. Faster! The Urgent Care Group Network includes 24 centers operating as three brands: Medac Urgent Care in North Carolina, MEDcare Urgent Care in South Carolina, and Health Choice Urgent Care in partnership with Northside Hospital in Georgia. Urgent Care Group was founded in 2017 and is based in Brentwood, Tennessee.

Buy -
SELLER

Tenth Street Capital

Chattanooga, Tennessee, United States

Investor Investor


Category Mezzanine Finance Firm
Founded 2005
PE ASSETS 500M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Tenth Street Capital is an independent investment firm that seeks to invest in lower middle-market companies operating in a broad range of industries. The Firm provides mezzanine and equity co-investments to profitable businesses with strong market positions and diverse customers. Areas of interest include manufacturing, distribution, and services. Investment proceeds are generally used to support acquisitions, buyouts, and recapitalizations. Tenth Street Capital was formed in 2005 and is based in Chattanooga, Tennessee.


DEAL STATS #
Overall 14 of 21
Sector: Information Technology M&A 2 of 2
Type: Recapitalization M&A Deals 2 of 2
State: Colorado M&A 1 of 1
Country: United States M&A 14 of 21
Year: 2017 M&A 2 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2017-09-25 Lawn Dawg

Nashua, New Hampshire, United States

Lawn Dawg is a provider of lawn care services specializing in the application of fertilizers, herbicides, and pesticides to residential and commercial customers. Lawn Dawg was founded in 1997 and is based in Nashua, New Hampshire.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-12-19 Thomas Pipe & Supply

Phoenix, Arizona, United States

Thomas Pipe & Supply LLC is a value added distributor of industrial pipe, valves, fittings and flanges (PVF) to the MRO and industrial markets. The company is the largest PVF distributor in the state of Arizona. Customers include industrial contractors, manufacturing facilities, hospitals, schools, service contractors, power plants and original equipment manufacturers.

Sell -