Private equity firm CD&R to buy IT company Presidio from BC Partners

Industry:    8 months ago

U.S. private equity firm Clayton Dubilier & Rice (CD&R) said on Tuesday it had agreed to acquire a majority ownership position in information technology provider Presidio from UK-based BC Partners.

CD&R said private equity firm BC Partners will continue to retain a minority ownership position in the company as part of the deal, whose terms were not disclosed.

Presidio has more than 6,660 customers and provides secured cloud-based technology to organizations ranging from government agencies to businesses such as Amazon.com, Cisco Systems, Microsoft and Google.

The company has had several private equity owners since it was founded in 2003.

American Securities acquired Presidio in 2011 for an undisclosed amount and had sold it to New York-based Apollo Global Management Inc three years later for about $1.3 billion, Reuters reported at the time.

BC Partners had acquired the company in 2019 and delisted it from the Nasdaq in a $2.1 billion take-private deal, two years after Apollo Global took it public.

Presidio had acquired several smaller rivals, including Irish IT consulting firm Arkphire and Charlotte, North Carolina-based ROVE, under BC Partners’ ownership.

In 2022, sources told Reuters that BC Partners was exploring Presidio’s sale that could value the technology services and solutions provider at more than $4 billion including debt.

CD&R said that the transaction was expected to close in the second quarter of 2024. It did not immediately respond to a request for comment seeking additional information on the stake held in Presidio.

CD&R primarily invests in businesses that span a broad range of industries, including industrial, healthcare, consumer, technology and financial services end-markets.

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