Ensures continued growth and leadership in providing clients world-class IT solutions and services
San Antonio, TX and New York, NY—05 April, 2019—Sirius Computer Solutions, Inc. (Sirius), a leading national IT solutions integrator, and Clayton, Dubilier & Rice (CD&R), a private investment firm, today announced an agreement in which a CD&R fund will acquire a majority equity interest in Sirius.
With $3.5 billion in annual gross sales, Sirius provides world-class solutions from proven technologies helping clients transform their business by managing their operations, optimizing their IT, and securing it all. Sirius’ current majority owners, funds affiliated with Kelso & Company, will exit their investment at the close of the transaction.
“At Sirius, we are focused on how we can best deliver business outcomes for our clients, which is why we continue to invest in the best technical skills, the right processes and tools, and strategic partnerships,” said Joe Mertens, president and CEO of Sirius. “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.”
“Sirius represents an attractive business model to invest behind, based on the strength of its client relationships and the ongoing demand for the solutions it offers,“ said Russ Fradin, CD&R partner and former president and CEO of SunGard Data Systems who will serve as the chairman of the Sirius Board of Directors post-closing. “The company is led by a very talented management team, and their leading practices in Managed Services, Cloud, Security, Digital, Data and IT Strategy make them a powerful force in the competitive IT industry.”
“Sirius has a demonstrated record of both organic and acquisition-related growth,” said Stephen Shapiro, CD&R partner. “Looking ahead, we see many rewarding opportunities for Sirius to become even more valuable by strengthening its market position, solutions offerings and services capabilities.”
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.
The transaction is expected to close late in the second quarter of 2019, and is subject to regulatory approvals and other customary closing conditions.
Kirkland & Ellis LLP is acting as legal advisor, and Credit Suisse is acting as financial advisor to CD&R in the transaction. Debevoise & Plimpton LLP is acting as legal advisor, and Raymond James & Associates, and William Blair are acting as financial advisors to Sirius.
About Sirius Computer Solutions, Inc. (Sirius): Founded in 1980 with headquarters in San Antonio, TX, Sirius is a privately held, leading national solutions integrator focused on helping organizations transform their business by managing their operations, optimizing their IT, and securing it all. With over 2,700 employees, multiple offices across the U.S., and a team of experts with more than 5,000 professional and technical certifications, the Sirius team specializes in IT Strategy (Infrastructure and Operations), Security, Business Innovation (Digital and Data), Cloud, and Managed Services. Sirius solutions are built on proven technologies from top strategic partners, and delivered by the brightest minds in the business. Follow @SiriusNews on Twitter and visit siriuscom.com and siriuscom.com/blog for more information about Sirius.
About Clayton, Dubilier & Rice: Founded in 1978, Clayton, Dubilier & Rice is a private investment firm. Since inception, CD&R has managed the investment of $28 billion in 84 companies representing a broad range of industries with an aggregate transaction value of more than $125 billion. CD&R’s current investments in tech-enabled services businesses include agilon health, Belron, Capco, Covetrus (f.k.a. Vets First Choice), naviHealth, SmileDirectClub, and TRANZACT (sale to Willis Towers Watson announced on March 31, 2019). CD&R has offices in New York and London. For more information, visit www.cdr-inc.com.
About Kelso & Company: Kelso is one of the oldest and most established firms specializing in private equity investing. Since 1980, Kelso has invested 10 funds, representing over $13 billion of equity capital, in 125 transactions. Kelso was founded by the inventor of the Employee Stock Ownership Plan (“ESOP”) and, as a result, the principles of partnership and alignment of interest serve as the foundation of the firm’s investment philosophy. Kelso benefits from a successful investment track record, deep sector expertise, a long-tenured investing team, and a reputation as a preferred partner to management teams and corporates. The firm is based in New York, New York. For more information, please visit www.kelso.com.
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