Partners Group is to acquire global IT support services provider Systems Maintenance Services (SMS) on behalf of its clients.
SMS is being sold by funds affiliated with Thomas H Lee Partners (THL) and Summit Partners.
The terms of the transaction, which is subject to regulatory approval, have not been disclosed.
Founded in 1981, US-based SMS is headquartered in Charlotte, North Carolina, and provides IT infrastructure services to a client base of more than 3,000 businesses. SMS offers third-party maintenance services in conjunction with a full suite of IT system support services. SMS has over 900 engineers on its staff and serves clients through more than 100 service centres across North America, Europe and Asia-Pacific, covering equipment from all the major IT original equipment manufacturers. In 2015, SMS recorded revenues of approximately USD245 million.
Following the acquisition, Partners Group will work with the SMS management team to continue the company's growth trajectory both organically and through select acquisitions. Particular emphasis will be placed on growing the company's global sales force and expanding its portfolio of services and global presence for its clients.
John Wozniak, president and CEO of SMS, says: "We look forward to working with Partners Group and building on the strong growth momentum experienced during our partnership with THL and Summit. Partners Group recognises the opportunity for independent service providers within the massive and dynamic IT infrastructure market. This perspective, together with Partners Group's global footprint and investment philosophy, makes it an ideal partner for SMS as we continue to build toward our global vision."
Joel Schwartz, managing director and head of private equity Americas at Partners Group, states: "We look forward to working alongside John Wozniak and the rest of the management team to act on the market opportunity in front of SMS. We have been tracking the company for several years and believe it is strategically positioned to be the global leader in 'last-mile touch services' to the IT hardware infrastructure sector. With this positioning, healthy industry tailwinds and a strong management team, SMS has all the ingredients necessary to outpace the growth rate of the overall IT support market."
Goodwin Procter and KPMG are advising Partners Group, and Antares Holdings and Crescent Mezzanine have provided commitments for the debt financing. William Blair served as the exclusive financial adviser to SMS and Weil, Gotshal & Manges served as the company's legal counsel.