Private equity firm BC Partners may be looking to sell Presidio, a major IT solutions provider that has cloud MSP, MSSP and cybersecurity capabilities, according to Reuters.
For 2021, Presidio generated:
- $3.1 billion in revenue;
- $350 million+ in EBITDA (earnings before interest, taxes, depreciation and amortization), the report said.
Presidio: Private Equity Ownership, Recent Acquisitions
BC Partners acquired Presidio for $2.1 billion and took the IT solutions provider private in 2019. Presidio has since grown organically and via M&A -- buying such firms as:
- June 2022: ROVE, an audiovisual systems integrator that supports customers across North and South Carolina;
- November 2020: Arkphire Group for Europe and Asia expansion.
- August 2020: Coda Global, a cloud migration, application development, DevOps, big data enablement, and machine learning solutions provider.
Fast forward to present day, and Presidio's focus spans cloud, infrastructure modernization, workforce transformation and cybersecurity. Moreover, the company has more than 3,600 employees listed on LinkedIn.
Neither Presidio nor BC Partners commented in the Reuters report.
MSP and IT Services M&A Activity Remains Strong
Although SaaS company valuations generally fell in the first half of 2022, MSP and IT service provider valuations held up particularly well during the period. Among the reasons: SaaS companies were generally valued on revenue multiples, while IT services firms are valued on EBITDA multiples. As investors shifted their focus from revenue growth to profit stability and growth, IT service providers could tout their strong EBITDA results.
Still, multiple large MSP-oriented companies are exploring breakups and potential asset sales. Potential asset sellers could include Rackspace and Atos, among others, according to previous ChannelE2E and MSSP Alert reports.
