ConvergeOne, a Clearlake Capital-backed provider of information technology (IT) services, has acquired two separate companies as part of an expansion effort. Sunturn Partners and Mountain States Networking were each sold to the Eagan, Minnesota-based company, broadening its reach across the Midwest and other regions.
Both transactions allow ConvergeOne to deepen its reach with middle market customers, according to John McKenna, ConvergeOne CEO. This isn't the first time the company has used M&A to grow its brand.
ConvergeOne has made a number of strategic acquisitions since it was founded in 2005. Since then it has purchased several competitors, including Spanlink Communications in September 2014 and NorthPark Group in April 2011. (For more, see related graphic.)
The primary focus of these deals have been to provide customers with complementary services. Sunturn was part of Avaya Platinum, a designer and manager of communications networks. It specializes in delivering contact center services to middle-market businesses within the healthcare and education space. With offices in Arizona, Colorado, Maryland, Texas and Utah, the company expands ConvergeOne accross western and southern United States. Sunturn will become a part of Nacr, a ConvergeOne subsidiary that provides communications and IT services to more than 4,000 clients that mainly include small businesses.
Similarly, Mountain States - with offices in Idaho, Nevada, Oregon and Utah - grows ConvergeOne’s footprint in the western region.
Clearlake acquired ConvergeOne from Genstar Capital Management LLC in 2014, concluding a sale process run by William Blair & Co. San Francisco-based Genstar had owned ConvergeOne since 2007.
Los Angeles-based Clearlake, which manages about $1.4 billion in equity capital, is expected to hold a first close on Clearlake Capital Partners IV. The fund is targeting $1 billion with a $1.25 billion hard cap.