Thoma Bravo Sells Equity Interest in Sirius Computer Solutions to Kelso & Company
Sirius Computer Solutions Announces Equity Partnership with Kelso & Company
San Antonio, TX – September 3, 2015 – Sirius Computer Solutions, Inc. (“Sirius”), a leading national IT solutions integrator founded in 1980, today announced it has reached an agreement with Kelso & Company (“Kelso”), a private equity firm based in New York, in which Kelso will acquire an equity interest in Sirius from Thoma Bravo and Harvey Najim, the company’s founder. The transaction is expected to close in the fourth quarter of 2015 and is subject to regulatory approvals and other closing conditions.
A 2006 equity investment by Thoma Bravo, a private equity firm with offices in Chicago and San Francisco, allowed Sirius to invest in a growth strategy which increased revenues from just over $600 million annually in 2006 to an expected $1.6 billion in 2015. Under this new partnership with Kelso, Thoma Bravo will be exiting their investment in Sirius.
“Business technology is changing at an increasingly rapid pace, and in order to continue providing the solutions which our clients need to be successful, we must continue to invest in the best technical skills, sales expertise, processes and tools,” said Joe Mertens, President and CEO of Sirius. “This new equity partnership with Kelso will help Sirius bolster its strategic growth plans and allow us to continue serving our clients’ business needs at the high level they have grown to expect from Sirius.”
“Sirius has become one of the premier technology solutions integrators in the U.S. by building strong partnerships, developing highly skilled people, and providing true business-class solutions to their clients,” said Hank Mannix of Kelso. “Our partnership will allow them to strengthen that leadership by continuing to support their operational and strategic initiatives.”
As part of this change in ownership, Harvey Najim, founder of Sirius, will be retiring as Chairman. Mr. Najim will continue to support charitable organizations throughout the San Antonio area as he has done throughout his career, and is currently doing through the Harvey E. Najim Family Foundation. “I am grateful to Kelso for their investment in Sirius, which will enable my Foundation to realize my goal of making a difference in the lives of children who are less fortunate,” said Mr. Najim.
“In concert with Harvey, Joe and the Sirius management team, we drove significant growth both organically and through acquisitions during our nine-year relationship, which resulted in a great long-term investment for our investors. We look forward to watching Sirius in this next phase of continued growth under its new ownership,” said Holden Spaht, Managing Partner at Thoma Bravo.
Joe 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.
Debevoise & Plimpton LLP is acting as legal advisor and Credit Suisse is acting as financial advisor to Kelso. Kirkland & Ellis LLP is acting as legal advisor to Thoma Bravo, and Elder Bray & Bankler PC is acting as legal advisor to Sirius.
About Sirius Computer Solutions: Sirius is a national integrator of technology-based business solutions that span the data center and other lines of business. Built on products and services from the world’s top technology companies, Sirius solutions are installed, configured and supported by our dedicated teams of highly certified experts. Sirius is focused on helping organizations of all sizes reduce cost and complexity, improve service levels, and minimize risk through the implementation of strategic solutions that include cloud, analytics, mobility, security, IT infrastructure optimization and more. For more information about Sirius, visit www.siriuscom.com.
About Kelso & Company: Kelso & Company is one of the oldest and most established firms specializing in private equity. Kelso differentiates itself from its peers given its successful 35-year investment track record, a long-tenured and stable investing team, a reputation as a preferred partner to management teams and strategics, and a significant alignment of interest with all of its partners. Since 1980, Kelso has raised a total of eight private equity funds, representing $9.8 billion of capital, and has made over 110 investments. Throughout its history, Kelso has had a successful track record investing in telecommunications companies. For more information, visit www.kelso.com.
About Thoma Bravo, LLC: Thoma Bravo is a leading private equity investment firm building on a 30+ year history of providing equity and strategic support to experienced management teams and growing companies. The firm seeks to create value by collaborating with company management to improve business operations and provide capital to support growth initiatives. Thoma Bravo invests with a particular focus on application and infrastructure software and technology enabled services. The firm currently manages a series of private equity funds representing more than $8.5 billion of equity commitments. For more information, visit www.thomabravo.com.
About the Harvey E. Najim Family Foundation: Established in December 2006, the Harvey E. Najim Family Foundation is aimed at helping children’s charitable organizations in the greater San Antonio area. Since 2007, Mr. Najim has contributed $84 million to the Najim Family Foundation, and the Foundation has given out in grants and pledges approximately $61 million. For more information, visit www.najimfoundation.org.