Private equity sharks at H.I.G. merge tech firms in latest blockbuster deal
A Miami-based private equity powerhouse with a $69 billion war chest just created a massive new tech company by smashing together two IT firms.
H.I.G. Capital announced Tuesday they’ve completed their merger of Converge Technology Solutions and Mainline Information Systems, creating a $4 billion tech services heavyweight now known as “Pellera Technologies.”
The deal gives H.I.G. a much bigger bite of the lucrative tech services market, particularly in the red-hot areas of cybersecurity, cloud computing, and artificial intelligence that are raking in massive profits.
“We’re accelerating investments in areas like AI, cybersecurity, hybrid cloud, app modernization, data, and managed services,” said Greg Berard, the new company’s CEO, who previously ran Converge.
The newly-formed tech giant will be headquartered in Tallahassee, Florida, where it will sell high-end technology solutions to big corporate clients. Berard will run the show while Mainline’s former boss, Jeff Dobbelaere, takes the number two spot as president and chief operating officer.
“Together, we have stronger relationships with our industry-leading partners, unlocking greater access and broader solutions for our clients,” Dobbelaere said.
The Pellera deal is just the latest in a spending spree by H.I.G., which has been buying and selling companies across multiple industries this year.
Earlier this month, they snatched up Quisitive Technology Solutions, another tech services firm that specializes in Microsoft Cloud and AI with nearly 500 employees. Last week, they announced an investment in GetixHealth, which handles billing and insurance for healthcare providers.
H.I.G. has been equally busy selling off companies, including Soleo Health, a specialty pharmacy business they unloaded in February to Court Square Capital and WindRose Health Investors.
The company has also been gobbling up European real estate, buying warehouses in France and an 85,000-square-foot innovation campus in Cambridge, UK, as well as taking stakes in a German machine tool manufacturer with over 2,600 employees worldwide.
Founded in 1993, H.I.G. has invested in more than 400 companies and currently controls a portfolio of over 100 businesses with combined sales exceeding $53 billion.
Wall Street banks cleaning up on advisory fees for the Pellera deal include Guggenheim Securities, J.P. Morgan, Lazard Frères, and BMO Capital Markets.
