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CD&R to secure a deal with Sirius
Posted on Monday, 08 April 2019 14:01
Private investment firm Clayton, Dubilier & Rice (CD&R) has agreed to pick up a majority stake in US-based information technology (IT) solutions integrator Sirius Computer Solutions for an undisclosed sum.

Headquartered in Texas, the target provides IT services for a range of industries across the US and has annual sales of USD 3.50 billion.

With 50 regional offices, the business comprises over 2,700 employees and features partnerships with companies such as RSA, Imperva, Pure Storage and Hitachi.

Sirius’s offerings include optimisation, design and project management, as well as security-related services for clients, namely, strategy consulting and auditing.

Joe Mertens, chief executive of the target, said: “This new equity partnership with CD&R will boost Sirius’ continued efforts to expand its market leadership, pursue growth opportunities, and help clients become more innovative, agile and secure.”

Upon closing, Sirius’ majority owners, which includes funds affiliated with Kelso & Company, will exit their investment.

Stephen Shapiro, a partner of CD&R, said: “Looking ahead, we see many rewarding opportunities for Sirius to become even more valuable by strengthening its market position, solutions offerings and services capabilities.”

The transaction, subject to regulatory approvals and the usual raft of closing conditions, is slated to complete in the second quarter of 2019.

As a result of the deal, CD&R further diversifies its portfolio, which already includes investments in the consumer and retail, healthcare and services industries.

Established in 1978, the acquiror has 175,000 employees and had a total enterprise value of realised portfolio companies of USD 61.00 billion as of June 2018.

It has a presence across North America and Europe and its portfolio includes businesses such as Belron, Envision Healthcare, Carestream Dental and retail store B&M.

Zephyr, the M&A database published by Bureau van Dijk, shows there have been 28 deals targeting computer systems designs services providers announced worldwide in the private equity and venture capital sector since the beginning of 2019.

In the largest of these, Francisco Partners Management agreed to acquire Denmark’s EG for DKK 3.70 billion (EUR 495.50 million).

Other targets in this sector include Affinity, Parking Genius and Emplio.

© Zephus Ltd