IT Services Acquisitions in 2016

Bellevue-based 110 Consulting has merged with fellow TA Group portfolio company Launch Consulting, combining their teams under the Launch brand to deliver expanded business intelligence, cloud operations, custom application development and digital transformation services. The merger, supported by TA Group Holdings (TAG) and parent Direct Technology, formalizes an integration that the companies said had effectively already occurred and aims to accelerate growth and client delivery.

Data Intensity, an Audax Group portfolio company and leader in application managed and cloud services for enterprise Oracle environments, has acquired Red Stack Tech, a UK-based Oracle solutions and managed services provider. The deal expands Data Intensity's global footprint and capabilities across the Oracle technology stack, adding teams in the UK, Poland and Australia and strengthening database, engineered systems, BI and analytics offerings.

H.I.G. Capital (through an affiliate) has acquired CABLExpress Corporation d/b/a CXtec and TERACAI Corporation, both headquartered in Syracuse, New York. The acquisitions combine CXtec’s refurbished networking hardware, data center cabling manufacturing and aftermarket maintenance capabilities with TERACAI’s systems-integration and IT infrastructure services to accelerate product and service expansion and growth.

Singapore-based private equity firm Capital Square Partners has acquired close to a 55% stake in Indecomm Global Services, a Bangalore-headquartered technology-enabled services and outsourcing company, in a deal valued at about $90 million. The transaction provided exits to early investors WestBridge Capital Partners, Tiger Global and the International Finance Corporation (IFC); Indecomm serves clients in mortgage, healthcare and banking and has roughly 3,500 employees across 21 locations.

Partners Group has agreed to acquire Systems Maintenance Services (SMS), a Charlotte-based global provider of IT hardware support and data center lifecycle services, from funds affiliated with Thomas H. Lee Partners and Summit Partners. SMS, which reported roughly $245 million in 2015 revenue and employs over 900 engineers across 100+ service centers, will work with Partners Group to expand its global footprint and service portfolio both organically and through add-on acquisitions.

EPAM Systems has acquired Dextrys, a Newburyport, Massachusetts-based provider of software engineering and application services. The acquisition adds delivery centers in Suzhou, Shanghai and Guangzhou, strengthening EPAM's delivery capabilities and footprint in China.

White Wolf Capital LLC completed a recapitalization of CSI IT, LLC (also referred to as Consulting Solutions International), providing the company with additional capital and resources to support accelerated growth and expanded service offerings. Financial terms were not disclosed; White Wolf will partner with CSI's management team to pursue organic growth and business development initiatives. CSI is an IT consulting, staffing and recruiting firm headquartered in Tallahassee, Florida.

Venture Technologies, an IT solutions provider based in Ridgeland, Mississippi, has acquired WhiteLight Group, a provider of enterprise business applications and Oracle JD Edwards services. The deal, supported by private equity firm FlatWorld Capital, expands Venture Technologies’ capabilities in ERP implementations, managed services and cloud-based business application offerings.

SolarWinds has acquired Dundee, Scotland-based IT service management firm LogicNow and will combine it with its SolarWinds N-Able business to form SolarWinds MSP. The deal — backed by a consortium led by Insight Venture Partners — is intended to expand SolarWinds’ automation, security, network management and service management capabilities for managed service providers; financial terms were not disclosed.

Valorem Consulting, a Kansas City–based Microsoft-focused IT consulting firm, has acquired IdentityMine, a user-experience and interactive design firm with offices in Seattle, Kochi (India) and Herrliberg (Switzerland). The acquisition expands Valorem’s UX, mixed-reality (HoloLens) and interactive design capabilities and increases its global footprint and professional headcount.

Publicis.Sapient, the digital transformation arm of Publicis Groupe, has acquired Vertiba, a Boulder-based Salesforce Gold Consulting Partner that specializes in Salesforce cloud solutions for marketing, sales and customer service. The acquisition strengthens Publicis.Sapient's Salesforce and CRM implementation capabilities to further its data-driven, customer-centric business transformation offerings.

Data Intensity, an Audax Group portfolio company, has acquired Oracle enterprise solution provider Enrich and the Oracle practice of UK-based Inatech. The add-on expands Data Intensity's end-to-end Oracle capabilities (including procurement, supply chain, financials and HR), increases its global footprint across the UK, India, Asia Pacific and the Middle East, and strengthens its managed and cloud services offering.