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TriCore Has Agreed to be Acquired by Rackspace

Friday, May 26, 2017


William Blair acted as exclusive financial advisor to TriCore Solutions, a portfolio company of BV Investment Partners, in connection with its pending acquisition by Rackspace, a portfolio company of Apollo Global Management, for an undisclosed price. The transaction was announced on May 25, 2017.

Transaction Highlights

  • Industry expertise: TriCore and BV were attracted to William Blair’s extensive knowledge and experience within the IT services segment and expertise in effectively positioning a wide variety of managed service business models. William Blair is one of the most active global advisors within the sector completing 15 M&A transactions in the past 24 months.
  • Deep relationships: Continuous dialogue with the most relevant financial and strategic acquirers created differentiated access to key decision-makers and insight into strategic priorities.
  • Process and execution excellence: William Blair’s transaction team designed a customized, global marketing process that included both strategic and financial acquirers. Successfully positioning TriCore as a strategic asset, William Blair delivered a highly competitive process, resulting in a premium valuation.
  • Trusted guidance: William Blair’s transaction team was integrally involved throughout each step of the transaction process, including close collaboration with management and BV in developing marketing materials, coordinating due diligence with multiple parties, and negotiating key contract terms. In particular, William Blair was able to focus buyers on TriCore’s impressive growth in managed services and recurring revenue, as well as the company’s exceptional margin structure.

About the Companies

TriCore Solutions provides comprehensive services for complex applications that are deeply embedded within mission-critical customer operations such as Oracle and SAP. The company has more than 275 enterprise customers and provides support across a range of delivery models including public cloud, private cloud, and customer on-premise. Based in Norwell, Massachusetts, TriCore has approximately 500 employees, with one-third located in the U.S. and the remaining technically focused and delivery employees located in Hyderabad and Gurgaon, India.

Rackspace provides infrastructure technologies, databases, and applications for businesses and customers, including Fortune 100 worldwide. It offers both hosting and infrastructure solutions along with managed services, including data services, managed security and compliance, and application migration. The company has approximately 4,600 employees and is based in San Antonio, Texas.

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