Washington, DC, (July 19, 2022) – FOCUS Investment Banking (“FOCUS”), a national middle market investment banking firm providing merger, acquisition, divestiture and corporate finance services, announced today that Intelligent Technical Solutions (“ITS”), a leading IT managed services provider (MSP), has been acquired by Tower Arch Capital. FOCUS served as catalyst for the deal with Tower Arch Capital and exclusive financial advisor to ITS. Financial terms of the deal were not disclosed.
This investment completes a recapitalization with ITS’s founding management team, including CEO Tom Andrulis, Chief Revenue Officer Dan Izydorek, and Chief Experience Officer Rob Schenk.
Founded in 2003, ITS provides managed IT, cloud, cybersecurity, VoIP phone, and fiber internet services to small and medium-sized businesses (SMBs) in several cities throughout the United States. The current ITS entity was formed as a merger of three historical entities to strengthen its service offerings, increase geographical diversification, and capitalize on synergies.
“ITS has grown to become the dedicated strategic technology partner for hundreds of SMBs throughout the Western and Midwestern United States,” said Tom Andrulis, CEO of ITS. “We’re proud of our team for building an organization committed to exceptional service, high quality offerings, and deep technical expertise. We look forward to our partnership with Tower Arch Capital as we further expand our footprint and enhance our service offerings to better support our current and future customers. Our team is committed to continuing our role as a strategic technology partner and a provider of best-in-class IT support."
"We are delighted to partner with Tom Andrulis, Dan Izydorek, Rob Schenk, and the entire ITS team,” added Aubrey Burnett, a partner at Tower Arch Capital. “Their team brings decades of experience in managed IT services, helping their customers solve complex problems and evolve their IT infrastructures. These capabilities, combined with additional investment for growth and acquisitions, will continue to drive ITS’s expansion in the MSP space. We are excited for the next chapter of growth and look forward to supporting ITS."
“Having been the catalyst for nine (9) MSP ‘Platform’ transactions for private equity groups, a couple things stood out to me about this transaction. First, Tom is an M&A prodigy. The number of outstanding MSP targets that he was able to uncover in the time we’ve worked together is unlike anything I’ve ever seen before,” added Abe Garver, FOCUS MSP Team Leader and Managing Director. “Tower Arch Capital also stands out to me as an exceptional transaction partner to ITS because of its ability to listen closely to our client’s objectives, and then craft a unique partnership proposal, which offered not only compelling value today, but also an attractive upside opportunity for shareholders and employees as the company continues to grow.”
“In 2020 alone, the FOCUS team executed on a milestone of four successful MSP ‘Platform’ transactions. We have recorded each private equity ‘Platform’ investment that we’ve been privy to, or which was publicly announced,” commented Stan Gowisnock, FOCUS Technology Services Team Leader and Managing Director. “As a result, we believe Tower Arch’s investment into our client, ITS, marks the 100th MSP to receive a PE ‘Platform’ investment. FOCUS has served as M&A advisor in ‘Platform’ and ‘Add-on’ transactions with 24% (12 of 51) of the MSP ‘Platforms’ announced by ChannelE2E over the past 2 ½ years (see Technology Company M&A Deals). FOCUS strives to provide value through M&A for both sides of the transaction and continues to be recognized for its leadership role in creating strategic partnerships like ITS and Tower Arch.”
About FOCUS Investment Banking
With more than three decades of experience, FOCUS Investment Banking is a trusted name in middle market M&A advisory services worldwide. Whether helping to sell, buy, or raise capital, FOCUS strives to maximize the value of every transaction for the benefit of its clients.
FOCUS’s Managed Service Provider (MSP) Team is one of the most active and successful in North America. FOCUS’s MSP Team executes on a customized strategy tailored to meet each client’s objectives. We bring deep industry expertise and years of transaction experience to every engagement.
Securities transactions conducted by FOCUS Securities LLC, an affiliated company, registered Broker Dealer member FINRA/SIPC. For more information, visit https://focusbankers.com/msp/.
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