Sirius Computer Solutions Announces Equity Partnership with Kelso & Company
Ensures continued growth and leadership in providing clients best-in-class technology and business solutions
San Antonio, TX – 3 September, 2015 – Sirius Computer Solutions, Inc. (“Sirius”) announces it has reached an agreement with Kelso & Company (“Kelso”), a private equity firm based in New York, whereby Kelso will acquire an equity interest in Sirius from Thoma Bravo and Harvey Najim, the company’s founder. The transaction is expected to close in the fourth quarter of 2015 and is subject to regulatory approvals and other closing conditions.
A 2006 equity investment by Thoma Bravo, a private equity firm with offices in Chicago and San Francisco, allowed Sirius to invest in a growth strategy which increased revenues from just over $600 million annually in 2006 to an expected $1.6 billion in 2015. Under this new partnership with Kelso, Thoma Bravo will be exiting their investment in Sirius.
“Business technology is changing at an increasingly rapid pace, and in order to continue providing the solutions which our clients need to be successful, we must continue to invest in the best technical skills, sales expertise, processes and tools,” said Joe Mertens, President and CEO of Sirius. “This new equity partnership with Kelso will help Sirius bolster its strategic growth plans and allow us to continue serving our clients’ business needs at the high level they have grown to expect from Sirius.”
“Sirius has become one of the premier technology solutions integrators in the U.S. by building strong partnerships, developing highly skilled people, and providing true business-class solutions to their clients,” said Hank Mannix of Kelso. “Our partnership will allow them to strengthen that leadership by continuing to support their operational and strategic initiatives.”
As part of this change in ownership, Harvey Najim, founder of Sirius, will be retiring as Chairman. Mr. Najim will continue to support charitable organizations throughout the San Antonio area as he has done throughout his career, and is currently doing through the Harvey E. Najim Family Foundation. “I am grateful to Kelso for their investment in Sirius, which will enable my Foundation to realize my goal of making a difference in the lives of children who are less fortunate,” said Mr. Najim.
“In concert with Harvey, Joe and the Sirius management team, we drove significant growth both organically and through acquisitions during our nine-year relationship, which resulted in a great long-term investment for our investors. We look forward to watching Sirius in this next phase of continued growth under its new ownership,” said Holden Spaht, Managing Partner at Thoma Bravo.
Joe Mertens will continue to lead Sirius as President and CEO, and there are not expected to be any changes in the company’s current management structure.
Debevoise & Plimpton LLP is acting as legal advisor and Credit Suisse is acting as financial advisor to Kelso. Kirkland & Ellis LLP is acting as legal advisor to Thoma Bravo, and Elder Bray & Bankler PC is acting as legal advisor to Sirius.
