ATSG, a technology provider for cloud, IT managed services, and cybersecurity, today announced it has completed a transaction to combine with Evolve IP, a provider of desktop-as-a-service, unified communications, contact centers, and other cloud services. The transaction is expected to significantly accelerate ATSG's services and solutions capabilities. The combined organization will have more than $230 million of revenue and serve over 950,000 end-users across 1,700 global customers. The vast majority of the combined company's revenue is monthly recurring revenue under long-term contracts.
ATSG, who will have a controlling majority, is backed by RunTide Capital, a private equity firm focused on building tech-enabled growth companies. Investment funds managed by Morgan Stanley Private Equity Secondaries, through a vehicle managed by RunTide Capital, provided the equity financing to complete the combination between ATSG and Evolve IP.
ATSG expects to integrate solutions from both companies into a broader and stronger managed services portfolio benefiting mid-and-enterprise customers. The adjacent, but highly accretive nature of each company's standalone service offerings will enable the combined business to better serve its customers. The combination of ATSG and Evolve IP will enable the combined company to expand its market presence and create greater value by harnessing pooled assets, resources, expertise, and leveraging ATSG's platform of intellectual property.
"Evolve IP offers an innovative, market-leading suite of desktop-as-a-service, cloud communications, and contact center solutions. Combined with ATSG's infrastructure-centric managed services, we will strengthen our collective position in the market and provide better outcomes for our combined base of customers," said Russ Reeder, CEO of ATSG and the go-forward CEO of the combined company. "By combining with Evolve IP, not only are we combining our collective expertise, culture, and services, we're also positioning ATSG to emerge as one of the largest privately-owned managed services platforms with an ability to drive value for all of our stakeholders."
"This journey marks a transformative step forward for Evolve IP and all of our customers," said Jeff Coursen, CEO of Evolve IP. "This aggregation of our talent, tools, and resources is a testament to our commitment to pioneering the industry and will enable us to offer maximum value for our customers. We are looking forward to leveraging ATSG's rich platform of intellectual property and suite of service capabilities to deliver an increasingly end-to-end solution for our customers."
Key Highlights of the Combination:
- Expanded Capabilities: The combination will unite ATSG's infrastructure-centric managed services with Evolve IP's desktop-as-a-service and cloud communications-centric managed services.
- Customer-Centric Approach: With a focus on turning customers into brand evangelists, the combined entity will prioritize exceptional service, cutting-edge solutions, unique IP, and consistent, proactive user engagement.
- Significant Scale: The transaction will immediately make the new organization one of the largest privately held managed services platforms.
- Leadership Team: The combination will centralize top talent from both companies, amassing a leadership team with a shared vision and a robust, proven track record of significant results.
Advisors
Guggenheim Securities, LLC served as financial advisor and sole private placement agent to ATSG, and Morgan Lewis and Bockius LLP served as legal advisor to ATSG. Rothschild & Co. served as financial advisor to Evolve IP and Choate, Hall & Stewart LLP served as legal advisor to Evolve IP.
About the Combination
With combined revenues of over $230 million and a global base of 1,700 customers, the combined company will be dedicated to driving innovation, enhancing customer experiences, and fostering a culture of scalability and growth. The combined company will offer a comprehensive platform of managed IT services designed to meet the evolving needs of businesses in a dynamic technological landscape.
