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CDR to acquire majority stake in Sirius

Private investment firm Clayton, Dubilier & Rice (CD&R) is to acquire a majority equity interest in IT solutions integrator Sirius.

With USD3.5 billion in annual gross sales, Sirius provides world-class solutions from proven technologies helping clients transform their business by managing their operations, optimising their IT, and securing it all. Sirius’ current majority owners, funds affiliated with Kelso & Company, will exit their investment at the close of the transaction.
“At Sirius, we are focused on how we can best deliver business outcomes for our clients, which is why we continue to invest in the best technical skills, the right processes and tools, and strategic partnerships,” says Joe Mertens, president and CEO of Sirius. “This new equity partnership with CD&R will boost Sirius’ continued efforts to expand its market leadership, pursue growth opportunities, and help clients become more innovative, agile and secure.”
“Sirius represents an attractive business model to invest behind, based on the strength of its client relationships and the ongoing demand for the solutions it offers,” says Russ Fradin, CD&R partner and former president and CEO of SunGard Data Systems who will serve as the chairman of the Sirius Board of Directors post-closing. “The company is led by a very talented management team, and their leading practices in Managed Services, Cloud, Security, Digital, Data and IT Strategy make them a powerful force in the competitive IT industry.”
“Sirius has a demonstrated record of both organic and acquisition-related growth,” says Stephen Shapiro, CD&R partner. “Looking ahead, we see many rewarding opportunities for Sirius to become even more valuable by strengthening its market position, solutions offerings and services capabilities.”
Mertens will continue to lead Sirius as president and CEO, and there are not expected to be any changes in the company’s current management structure.
The transaction is expected to close late in the second quarter of 2019, and is subject to regulatory approvals and other customary closing conditions.
Kirkland & Ellis LLP is acting as legal advisor, and Credit Suisse is acting as financial advisor to CD&R in the transaction. Debevoise & Plimpton LLP is acting as legal advisor, and Raymond James & Associates, and William Blair are acting as financial advisors to Sirius.

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