ITS buys Dallas's Velocity IT in 11th deal since 2022
What's the deal? Intelligent Technical Solutions (ITS)Dealroom has a profile for this one. Try Dealroom →, a portfolio company of Tower Arch CapitalDealroom has a profile for this one. Try Dealroom →, has recapitalised Dallas-based Velocity ITDealroom has a profile for this one. Try Dealroom → in partnership with founder and chief executive officer Kenny Riley. Terms were not disclosed. Founded in 2010, Velocity IT provides managed IT services to small- and mid-size businesses.
What's the endgame? The deal expands ITS's footprint in Texas, a market it has targeted for growth. Velocity IT's clients keep the same team as part of the larger ITS platform.
Why now? "Texas has been targeted as a growth market for ITS and this new partnership with Velocity IT gives us a passionate team on the ground," said Tom Andrulis, chief executive officer of ITS.
Riley framed the deal as a way to preserve the company's approach while adding scale. "Partnering with ITS allows us to preserve that commitment while giving our team access to additional resources, technical expertise, and opportunities for growth," he said.
By the numbers: Since partnering with Tower Arch Capital in May 2022, ITS has acquired 10 managed service and cybersecurity providers across the US. It now serves over 750 clients in end markets including healthcare, finance, insurance, and professional services.
Deerpath CapitalDealroom has a profile for this one. Try Dealroom → financed the transaction. Calfee, Halter & Griswold LLPDealroom has a profile for this one. Try Dealroom → and BDO USA LLPDealroom has a profile for this one. Try Dealroom → advised ITS. Tower Arch, based in Salt Lake City, targets control positions in family- and entrepreneur-owned businesses with EBITDA between $8 million and $30 million.
The signal: The deal underscores steady consolidation in the fragmented managed IT and cybersecurity market, where private equity-backed platforms are rolling up regional providers to build national scale.
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