Los Angeles-based investment firm, Gallant Capital Partners, has finalized a strategic growth investment in U.S. IT firm, DynTek, Inc., and Canadian cybersecurity company, rSolutions Corporation. Instead of a full merger, Gallant plans to integrate both firms under a shared leadership and investment framework, aiming to bolster growth, operational enhancements, and potential future acquisitions. While financial terms were not disclosed, this move also marks the inaugural investment from Gallant’s second fund, Gallant Capital Partners II.
This is technology M&A deal number 232 that ChannelE2E and MSSP Alert have covered so far in 2023. See more than 2,000 technology M&A deals for 2023, 2022, 2021, and 2020 listed here.
Gallant Capital Partners, founded in 2018, has 25 employees listed on LinkedIn.
DynTek is based in Irvine, California. The company has 201 employees listed on LinkedIn. DynTek’s areas of expertise include Cloud Solutions, IT Security, IT Architecture Design & Consulting, Microsoft Platforms, Cisco Infrastructure & Data Center Solutions, Virtualization, Storage, Technical Support, Managed Services, Digital Transformation, Data Center, Digital Infrastructure, Risk Management, Modern Workplace, Collaboration, Azure, NetApp, Citrix Digital Workspace, Microsoft 365, Microsoft Teams, Managed Security Services, and Security Operations Center.
rSolutions, founded in 2010, is based in Regina, Saskatchewan. The company has 48 employees listed on LinkedIn. rSolutions’ areas of expertise include information security, malware detection and prevention, next generation firewalls, big data, log management, Splunk, penetration testing, security validation, SIEM, vulnerability management, and FireEye.
Joining Forces
As part of this investment, both firms will consolidate under one leadership. Paul Kerr, with 25 years in IT and founder of Scalar Decisions, will take the helm as CEO of the unified entity, the firm announced.
DynTek CEO Tim Montgomery and rSolutions CEO Richard Baker, as well as members from both executive teams, will maintain significant ownership stakes in the joint business, the firm said.
Gallant Invests In DynTek and rSolutions: Additional Insight
Tim Montgomery, CEO, DynTek, commented:
"We are thrilled to join forces with Gallant in this transformative partnership, setting the stage for unparalleled growth, development, and an extended footprint in serving our valued clients. The Gallant team brings a tremendous amount of industry, operational, and strategic expertise that will significantly bolster our ability to accelerate our already strong growth trajectory."
Paul Kerr, CEO, DynTek, rSolutions, and Gallant, said:
“I’m looking forward to embarking on this new chapter as CEO and working with the teams at DynTek, rSolutions, and Gallant.”
Jon Gimbel, Partner, Gallant Capital Partners, commented:
"With decades of experience, both DynTek and rSolutions have firmly established themselves as market leaders. We are excited to partner with them and Paul to help foster the next phase of accelerated growth. Both organizations have developed a distinct market differentiation with state-of-the-art Security Operations Centers. Together, we are set to unlock new opportunities in the high-demand cybersecurity market.”
Richard Baker, CEO and founder, rSolutions, stated:
“We’ve been working on this for the past several months and with every passing day the sense of optimism surrounding our team has only grown. We are excited for the opportunities to provide cybersecurity solutions for a broader set of end markets through our services."
For this transaction, DC Advisory acted as the financial advisor for Gallant. DynTek was advised by B. Riley Securities, Inc., and rSolutions by Royal Bank of Canada, Mid-Market M&A.
