Apollo announced that its managed funds will buy Trace3, a leading provider of enterprise and commercial technology solutions, from American Securities, which will keep a significant minority stake.
Founded in 2002, Trace3 serves commercial and Fortune 500 clients with expertise in AI, cloud, security, data analytics, managed services, infrastructure, and emerging technologies. The company is well-positioned for growth as demand for advanced IT solutions continues to rise.
Apollo has prior experience in IT services, including investments in Presidio and TD SYNNEX. The deal awaits customary closing conditions and regulatory approval. Citi led financial advisory services for Apollo, with additional advisors including Wells Fargo and RBC; Paul, Weiss acted as legal counsel. Guggenheim Securities and Kirkland & Ellis advised Trace3 and American Securities.
KEY QUOTES:
“The partnership with Apollo is a powerful testament to the quality of our brand, our people and our consistent track record of growth. They embrace our unwavering commitment to innovation, technical excellence and deep client relationships. Together, we’re poised to accelerate the Company’s trajectory while preserving the special culture that continues to attract the best talent in technology.”
Rich Fennessy, Chief Executive Officer of Trace3
“Trace3 is a recognized leader in enterprise IT, with a strong culture of innovation and a track record of delivering critical and cutting-edge products and services to its broad client base. We see a meaningful opportunity to support Trace3’s efforts to meet AI-related demand across their client base and expand high-value service offerings while pursuing strategic M&A to help accelerate the company’s growth trajectory. We’re excited to partner with the Trace3 team in this next chapter of growth.”
Robert Kalsow-Ramos, Partner at Apollo
“Trace3’s management team has done an exceptional job scaling the business, expanding its capabilities and establishing the company as a trusted partner in delivering cutting-edge technology solutions. We’re proud to have supported their growth, which reflects American Securities’ strategy of partnering with strong teams in sectors where we can add lasting value. We look forward to continuing our partnership alongside Apollo and the Trace3 team as the company enters its next phase.”
Kevin Penn, Managing Director of American Securities
