Nitel has received an investment from private equity firm Cinven. While the amount of the investment was not disclosed, the company called it “significant.”
Nitel is a next-generation technology services provider headquartered in Chicago Illinois. The company provides internet connectivity and networking technology services to multi-site small and medium-sized enterprises (SMEs).
Founded in 2003, Nitel also provides software-defined wide area network (SD-WAN) solutions and associated managed cybersecurity offerings.
Cinven’s Investment Motivation
The investment was made through Cinven’s Technology, Media and Telecom (TMT) Sector team. The group noted that Nitel operates in a large and growing market of managed internet connectivity services and has opportunity to expand into similar services. There is also potential to grow the company further through additional acquisitions, according to Cinven.
The deal is Cinven’s third majority investment in a founder-owned business in 2021. Previous investments include Drake Software, a provider of professional tax preparation software, and think-cell, a developer of productivity software for creating data-driven presentations in Microsoft PowerPoint. The firm also expressed interest in acquiring IT consulting firm Atos earlier this year.
Nitel's Private Equity Investment
Chris Good, partner at Cinven, commented:
“Founders Ron and Rick have built an impressive business: not only has Nitel delivered a market-leading offering, capitalising on the rapid growth of the managed access and SD-WAN markets, but they have built an unparalleled reputation for providing customers with outstanding service levels. The Nitel team has worked hard and done an excellent job in growing the business organically, and we look forward to exploring new opportunities to support the Company’s growth ambitions both organically and through acquisitions in the future.”
Daniel Garin, principal at Cinven, added:
“We pride ourselves on Cinven’s strong track record of successfully partnering with founder-led and technology-focused companies, and Nitel fits squarely within this investment focus. We see significant opportunity to work closely with management to capture high-growth opportunities in the SD-WAN category and expand into adjacent services, and we look forward to delivering on our shared vision for Nitel.”
Ron Grason, president at Nitel said:
“Nitel is a market leading provider of next generation software defined networking and managed security services to global enterprises. Our passion and vision to serve our customers’ ever-changing needs, through innovative product offerings, award winning customer service, and a customer-first culture are the testaments to our success.”
Rick Stern, CEO at Nitel, added:
“Cinven shares our vision, believes in our strategy, people, partners and the culture we have built over nearly two decades, and understands the tremendous growth opportunity in front of us as the evolution of cloud and network optimization continues to accelerate. We look forward to continued success with our new partner.”
The transaction is subject to customary regulatory approvals.
