New Partnership Positions Managed Service Provider for Next Phase of Growth
Coretelligent, a leading provider of comprehensive managed and co-managed white glove IT support, cybersecurity, backup and disaster recovery, and cloud services, has announced it has been acquired by Norwest Equity Partners (NEP), a leading middle market investment firm based in Minneapolis, Minnesota. The transaction closed on October 21, 2021; financial terms of the transaction were not disclosed. Previous investor, VSS Capital Partners (VSS), will participate in Coretelligent’s next phase of growth as a minority shareholder in the Company.
NEP has been investing in growing, profitable middle market companies that are leaders in their respective industries for more than 60 years. The firm’s prior history of investing in providers of IT services makes Coretelligent a natural addition to its investment portfolio. This new partnership will provide Coretelligent with valuable organic growth opportunities, as well as those realized through strategic acquisitions.
“It is with the utmost gratitude we thank VSS for their continued support for a successful partnership over the past 5 years. Their support has helped us build a robust, best-in-class offering in the fragmented MSP market,” said Kevin J. Routhier, President and CEO of Coretelligent. “At Coretelligent, we remain steadfastly committed to delivering robust, comprehensive solutions for our clients’ evolving technology and security needs. Partnering with NEP provides Coretelligent tremendous opportunity for continued scale and differentiation in an increasingly competitive market. Our collective alignment of core values, coupled with NEP’s incredible track record and industry expertise places Coretelligent in an optimal position as we embark on our next chapter.”
Tim DeVries, NEP Managing Partner, stated, “Coretelligent’s best-in-class service offering has created stellar client relationships along with a compelling growth profile. We are very excited to partner with Kevin and the rest of the Coretelligent management team to extend the Company’s leadership position in the attractive managed IT services market.”
Adam Garcia Eveloff, NEP Managing Director, echoed Mr. DeVries’s comments: “This is a great opportunity for NEP given our experience with IT service investments, successful M&A execution, and partnership with founders. Kevin has built an outstanding team, and it is well positioned to take Coretelligent to the next level. We are excited to be part of the next stage of growth.”
“We are proud of what we have accomplished during our partnership with CEO Kevin J. Routhier and his team at Coretelligent, which speaks to VSS’s ability to maximize the long-term value and success of our portfolio companies by working closely with management,” said Trent Hickman, Managing Director at VSS, who also previously served as Chairman of Coretelligent. “With Coretelligent, we identified an opportunity to invest in and build a truly differentiated platform company with unique technology and high-performance capabilities that serve a wide range of professional services clients in attractive, fast-growing end markets.”
Drake Star Partners advised Coretelligent on the transaction; Winston & Strawn, LLP was legal advisor to NEP; and Alliance Bernstein provided debt financing; Ropes advised VSS.
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