Presidio, the massive IT services provider, is considering a $2 billion IPO, according to The Wall Street Journal. The company -- a close Cisco Systems, EMC and VMware channel partner -- is owned by Apollo Group Management, a private equity firm.
ChannelE2E's spin on the situation is slightly different. It goes something like this: Presidio has been in growth- and transformation-mode over the past two years. And the company meets regularly with all types of potential investors and advisors. We do believe Presidio is on a road toward a financial event -- perhaps IPO. But don't read too much into a meeting here or a meeting there with advisors over the next week or two... or longer.
Presidio offers consulting, IT design, optimization and implementation, and IT-as-a-Service. The company has been helping clientele with major digital transformations. Many of the initiatives include hybrid cloud, cyber security, Internet of Things (IoT), collaboration, mobility, communications, networking and data center initiatives.
The company has a deep talent base. Of Presidio's 2,700 employees, roughly 1,600 are engineers who hold more than 6,000 certifications. The company's clientele spans 7,700 large, middle-market and public sector customers.
Presidio's Transformation
Apollo announced plans to acquire Presidio in December 2014 and the finalized deal emerged in February 2015. Led by CEO Bob Cagnazzi, Presidio has since made multiple acquisitions to diversify its geographic footprint while also gaining software- and cloud-oriented intellectual property.
Key Presidio acquisitions have included:
- Netech, a $300 million Cisco, NetApp and VMware partner.
- Sequoia Worldwide LLC, which offers private and hybrid cloud solutions, along with cloud brokerage technologies.
Presidio is one of several classic VARs that have transformed into hybrid cloud service providers -- gaining a blend of intellectual property and annual recurring revenue (ARR) that have lifted the company's valuation. We also refer to Presidio as a total service provider -- since the company offers a blend of product, integration and managed services.
Presidio is expected to interview IPO bankers next week, The Wall Street Journal says. But as we've stated: It's possible this is merely a test balloon to see what the company is truly worth well ahead of any potential IPO plans.
ChannelE2E has not independently confirmed The Wall Street Journal's story.
VARs Transform With IPOs In Mind
Several other VARs-turned-MSPs and CSPs also are said to be weighing IPOs in the next year or two. Chief among them is ConvergeOne -- a large Avaya channel partner that specializes in managed unified communication services. Clearlake Capital Group acquired ConvergeOne in 2014, and that company also has been charting a longer-term path to a potential IPO, sources tell ChannelE2E.
