Key Takeaways
- • Frontenac, a Chicago-based private equity firm, has entered a recapitalization partnership with Pittsburgh-based managed services provider Ideal Integrations, announced via Business Wire.
- • The partnership is designed to accelerate organic growth and explore strategic acquisitions, alongside CEO and founder Michael Stratos.
- • Nelson Eng, a Frontenac CEO1ST partner with over 30 years in IT services, has joined Ideal Integrations' board as Chairman.
- • The transaction's financial terms were not disclosed.
- • The deal expands Frontenac's portfolio of tech-enabled and IT services companies.
Summary
Ideal Integrations, a Pittsburgh-based managed services provider of IT and cybersecurity solutions, has announced a strategic recapitalization undertaken in partnership with Chicago-based private equity firm Frontenac and founder and CEO Michael Stratos, according to a Business Wire release. The stated objectives are to accelerate organic growth and to explore strategic acquisitions. Ideal Integrations, founded in 2003 by Stratos, delivers tailored end-to-end IT services as well as cybersecurity services under its Blue Bastion brand, and describes its approach as high-touch and white-glove.
Stratos said the company is experiencing significant growth and that the partnership with Frontenac marks the next phase of its evolution, noting that Frontenac brings extensive industry experience and is dedicated to helping expand its services and capabilities. He added that he is looking to pursue both organic and inorganic growth opportunities.
As part of the recapitalization, Nelson Eng, a Frontenac CEO1ST partner with more than 30 years of experience in IT services, has joined the board as Chairman. Eng previously served as President and CEO of Milestone Technologies and as Chief Strategy Officer and Chief Development Officer at DXC Technology. He said the company intends to become the premier platform for managed IT and cybersecurity services.
The deal further enhances Frontenac's portfolio of tech-enabled and IT services companies, which includes Integris (IT managed services), RCG Global (digital transformation services), Dealer Services Network (tech-enabled title and registration services), and Excellarate (digital product engineering services). Dentons Cohen & Grigsby advised Ideal Integrations, and DLA Piper LLP represented Frontenac. Financial details of the transaction were not disclosed.
Stratos said the company is experiencing significant growth and that the partnership with Frontenac marks the next phase of its evolution, noting that Frontenac brings extensive industry experience and is dedicated to helping expand its services and capabilities. He added that he is looking to pursue both organic and inorganic growth opportunities.
As part of the recapitalization, Nelson Eng, a Frontenac CEO1ST partner with more than 30 years of experience in IT services, has joined the board as Chairman. Eng previously served as President and CEO of Milestone Technologies and as Chief Strategy Officer and Chief Development Officer at DXC Technology. He said the company intends to become the premier platform for managed IT and cybersecurity services.
The deal further enhances Frontenac's portfolio of tech-enabled and IT services companies, which includes Integris (IT managed services), RCG Global (digital transformation services), Dealer Services Network (tech-enabled title and registration services), and Excellarate (digital product engineering services). Dentons Cohen & Grigsby advised Ideal Integrations, and DLA Piper LLP represented Frontenac. Financial details of the transaction were not disclosed.
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