H.I.G. Capital Announces Sale of Trace3
SAN FRANCISCO – September 27, 2021 – H.I.G. Capital (“H.I.G.”), a leading global alternative investment firm with over $45 billion of equity capital under management, announced today that one of its affiliates has entered into a definitive agreement to sell Trace3 (the “Company”) to affiliates of American Securities.
Trace3 is a premier provider of IT solutions and services to over 2,500 commercial and enterprise clients across the U.S. Through elite engineering talent, dynamic leadership, an in-house research team, and unparalleled venture capital connections, Trace3 stays on the leading edge of the technology innovation curve and empowers its clients with the most advanced cloud technologies, data center designs, security strategies, and business intelligence solutions in the industry. The Company is headquartered in Irvine, CA with offices across the United States.
H.I.G. invested in the business in 2017. During H.I.G.’s ownership, through a series of strategic growth initiatives and acquisitions, the Company tripled revenues to $1.4bn, becoming a leading national player while broadening its managed services offering.
“H.I.G. was an invaluable partner who enabled us to maintain the culture that makes Trace3 special, while providing strategic vision in helping us build one of the largest solutions providers in the U.S.,” said Rich Fennessy, Chief Executive Officer of Trace3. “Our team is proud and excited to now partner with American Securities as we embark on our next phase of growth.”
“We are extremely proud to have supported Trace3’s differentiated growth during our partnership with the team over the past four years. We feel fortunate to have played a role in continuing Trace3’s legacy as a best of breed, emerging-tech focused solutions provider,” commented Kevin Van Culin, Managing Director at H.I.G. Capital.
“The partnership with Trace3 has been an extremely successful one for H.I.G., our investors, and the company. We look forward to watching Trace3 continue to grow,” noted Matthew Robinson, Managing Director at H.I.G. Capital.
Guggenheim Securities LLC served as the exclusive financial advisor to Trace3; Akerman LLP and Latham & Watkins LLP served as legal counsel to Trace3 and H.I.G. for this transaction. Kirkland & Ellis LLP represented American Securities. The transaction remains subject to customary closing conditions and the financial terms of the transactions are not being disclosed.
Trace3 is a premier provider of advanced technology consultation services and solutions. Founded in 2002, Trace3 offers a broad mix of end-to-end technology services and solutions, ranging from artificial intelligence and data science, to cloud computing and security consulting. The Company also maintains a venture capital briefing program, with a sharp focus on emerging technologies, and provides clients with extensive research focused on the latest IT trends. Trace3 is headquartered in Irvine, CA. and maintains office locations across the United States. Trace3 is privately held by H.I.G. Capital. For more information, visit www.trace3.com.
About H.I.G. Capital
H.I.G. is a leading global alternative assets investment firm with over $45 billion of equity capital under management.* Based in Miami, and with offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, and Atlanta in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Milan, Paris, Bogotá, Rio de Janeiro and São Paulo, H.I.G. specializes in providing both debt and equity capital to small and mid-sized companies, utilizing a flexible and operationally focused/value-added approach. Since its founding in 1993, H.I.G. has invested in and managed more than 300 companies worldwide. The firm’s current portfolio includes more than 100 companies with combined sales in excess of $30 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.
* Based on total capital commitments managed by H.I.G. Capital and affiliates.