Why BC Partners Is Buying Presidio For $2.1 Billion

By Dan Anderson ● August 16, 2019
  • Leading international investment firm BC Partners announced that funds advised by the company are acquiring Presidio for approximately $2.1 billion

Leading international investment firm BC Partners has announced that funds advised by the company are acquiring Presidio, Inc. for approximately $2.1 billion including the net debt with cash.  Presidio is a leading North American IT solutions provider delivering Digital Infrastructure, Cloud, and Security solutions to create agile and secure infrastructure platforms for commercial and public sector customers.

As part of the deal, Presidio stockholders will receive $16 in cash for each share of Presidio common stock they own. And the purchase price represents a premium of 21.3% over Presidio’s closing stock price of $13.19 on August 13, 2019, and a premium of 18.3% over the company’s 60-day volume-weighted average share price leading up to this announcement. The Presidio Board of Directors unanimously approved the agreement with BC Partners and is recommending that Presidio stockholders vote in favor of the transaction.

ADVERTISEMENT

“We believe this transaction will provide immediate and substantial value to Presidio stockholders, while providing us with a partner that can add strategic and operational expertise to our business, with a focus on executing our long-term strategy,” said Presidio CEO Bob Cagnazzi.

The closing of the transaction is subject to customary conditions, including approval by the holders of a majority of the outstanding shares of Presidio common stock. AP VIII Aegis Holdings, L.P., an affiliate of investment funds managed by affiliates of Apollo Global Management, LLC — which owns approximately 42% of the outstanding shares of Presidio common stock — has entered into a voting agreement with BC Partners pursuant to which it has agreed to vote its shares of Presidio common stock in favor of the merger.

ADVERTISEMENT

“Over the last several years, Presidio has become the leader in designing, developing, deploying and managing agile secure IT infrastructures that drive real business value for thousands of commercial and public sector entities across the United States,” added Fahim Ahmed — a lead deal Partner at BC Partners. “We look forward to supporting the company in its next phase of growth.”

And Presidio is expecting to continue to pay its regular quarterly dividend of $0.04 per share during the pendency of the transaction. The transaction is expected to close in Q4 2019.

The fully committed debt financing for the transaction will be provided by Citi, JPMorgan Chase Bank, N.A., and RBC Capital Markets. And LionTree Advisors is acting as financial advisor to Presidio, and Wachtell, Lipton, Rosen & Katz is acting as its legal counsel. Citi, J.P. Morgan Securities LLC, and RBC Capital Markets are acting as financial advisors and Kirkland & Ellis LLP is acting as legal counsel to BC Partners.

As of June 30, 2018, Presidio has been serving approximately 8,000 middle-market, large, and government organizations across a diverse range of industries. And approximately 2,900 Presidio professionals, including more than 1,600 technical engineers, are based in 60+ offices across the US in a unique, local delivery model combined with the national scale of a $2.8 billion dollar industry leader.

Why is BC Partners buying Presidio? 

“Presidio fits squarely with our key investment priorities. Its markets benefit from secular growth, as IT systems and networks have become increasingly complex. It is well-positioned as a leader in a fragmented industry, offering scope for further expansion. We’re excited to partner with Bob and his team to support the future growth of the business,” explained Raymond Svider — a partner and the chairman of BC Partners.

ADVERTISEMENT