Private Equity Firms Acquire Tech Companies to Bolster Operations

Several private equity (PE) firms are in the market for buying tech companies, showing that technology spending is set to grow further in coming years.
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CD&R

Clayton Dubilier & Rice (CD&R), a U.S. private equity firm, has purchased majority stake in information technology provider Presidio from UK-based BC Partners. The terms of the deal, which sees BC Partners retaining a minority ownership stake, were not disclosed.

Presidio, boasting a customer-base of over 6,660 customers, specializes in providing secure cloud-based technology solutions to a diverse range of organizations, including government agencies and corporate giants such as Amazon, Cisco Systems, Microsoft, and Google.

This acquisition marks the latest chapter in Presidio’s journey through private equity ownership. Initially acquired by American Securities in 2011, it subsequently changed hands to Apollo Global Management Inc. in 2014, before BC Partners took the reins in 2019, delisting it from Nasdaq in a $2.1 billion take-private deal, Reuters news report said.

Under BC Partners’ ownership, Presidio engaged in strategic acquisitions, absorbing smaller rivals like Irish IT consulting firm Arkphire and North Carolina-based ROVE.

EQT

EQT, a private equity firm based in Stockholm, Sweden, announced its acquisition of compliance software maker Avetta from Welsh, Carson, Anderson & Stowe (WCAS). News reports suggest the deal valued Avetta at approximately $3 billion, including debt.

Avetta’s software, designed to monitor supply chains, has gained prominence amid global disruptions caused by geopolitical tensions and natural disasters. The company’s offerings are utilized in over 130 countries.

Welsh Carson’s involvement in Avetta dates back to 2018 when it acquired a majority stake. A subsequent merger with BROWZ, another software vendor focusing on supply chain risk management, further expanded Avetta’s reach.

Advent International

Advent International has agreed to purchase Canada’s Nuvei in an all-cash transaction valued at $6.3 billion. This move takes Nuvei private four years after its listing on the Toronto Stock Exchange.

Nuvei, backed by actor Ryan Reynolds, specializes in payments technology, facilitating transactions for businesses worldwide. Advent’s acquisition offers Nuvei shareholders a substantial premium, with current CEO Philip Fayer set to continue leading the company from its Montreal headquarters.

Notably, Advent’s portfolio includes investments in the payments sector, such as Brazil’s Ebanx and the UK’s Planet. With these acquisitions, private equity firms continue to demonstrate their appetite for technology-driven ventures amid a rapidly evolving market landscape.

Baburajan Kizhakedath

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