Evolve IP and ATSG have announced a strategic merger to form a prominent major services provider.
ATSG, a global tech provider for cloud, IT-managed services, and cybersecurity, expects the transaction will accelerate its services, bolstering the combined entity's ability to address customers' increasingly interconnected and complex tech challenges.
Both businesses expect the combined entity to generate over $230 million in revenue and serve over 950,000 end-users across 1,700 global customers. Most of this revenue will be monthly recurring revenue under long-term contracts.
Jeff Coursen, CEO of Evolve IP, said:
This journey marks a transformative step forward for Evolve IP and all of our customers. 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 services capabilities to deliver an increasingly end-to-end solution for our customers."
ATSG, which will hold a controlling majority, is supported by RunTide Capital, a private equity firm. Equity financing for the combination of ATSG and Evolve IP was provided by investment funds managed by Morgan Stanley Private Equity Secondaries through a vehicle managed by RunTide Capital.
ATSG plans to integrate solutions from both companies into a more comprehensive and robust managed services portfolio, benefiting mid- and enterprise customers. Evolve-IP and ATSG affirm that the complementary nature of each company's standalone service offerings will enable the combined business to serve its customers better.
The combined company intends to provide a thorough platform of managed IT services tailored to meet the dynamic needs of businesses in today's tech landscape.
"Evolve IP offers an innovative, market-leading suite of desktop-as-a-service, cloud-communications, and contact centre solutions," added Russ Reeder, CEO of ATSG and the go-forward CEO of the combined business.
"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. 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."
Cited Highlights of the Merger
By uniting ATSG's infrastructure-centric managed services with Evolve IP's desktop-as-a-service and cloud communications-centric managed services, both companies stress the combined entity will be able to offer a comprehensive suite of end-to-end services to its customer base. This expanded capability seeks to enhance service delivery and provide customers with a more integrated and seamless experience.
