MiddleGround Capital, a Kentucky-based middle market private equity firm specialising in B2B industrial and specialty distribution companies across North America and Europe, has acquired IT8, a provider of engineering services.
IT8 is based in Valencia, Spain, and offers programming, mechanical and electrical engineering services, as well as installation and site services in a near-$2bn market for outsourced engineering services. The company was founded in 2004 and serves customers across locations in Spain, the US, Mexico, Germany and India.
According to a press release, MiddleGround will work with IT8 to further expand service offerings beyond the automotive sector to other key markets including intra-logistics, commercial vehicles and aerospace.
The investment builds on the firm’s mobility strategy, which focuses on electrification and high complexity electronics within the mobility space, specifically electrical vehicles (EVs) as well as autonomous and connected technologies.
In recognition of the EV market’s revenue projected increase at a double-digit growth rate, IT8’s expansion plans will also incorporate programmable logic controller (PLC) and robot programming, mechanical design and electrical installations.
In a statement, John Stewart, a Managing Partner at MiddleGround, said: “As the industry advances in more highly engineered sectors like e-mobility, there is an increased need for more complex and technical automation capabilities.
“We believe IT8’s highly technical team is well positioned to adapt and embrace these trends given their proven track record and unique positioning among system integrators.”
Alex van der Have, a Managing Director on the EU transaction team at MiddleGround, said that the acquisition of IT8 marked the firm’s second platform deal in Europe.
He added: “By partnering with IT8, we will be able to reach new customers across key growth areas while simultaneously better addressing the more complex needs of the existing customer base.”
