IT service providers ATSG and Evolve IP merge

IT service providers ATSG and Evolve IP merge

ATSG will have a controlling majority within the new structure. Financing will be provided entirely through this company.

According to both providers, the merger is intended to strengthen their market positions, expand further, and offer customers more value.

However, ATSG appears to have a controlling majority in the new set-up, indicating that this may be more of an acquisition of Evolve IP. This is made particularly clear by how the “merger” was financed.

Private equity investor RunTide Capital backs managed services provider ATSG. For the merger or acquisition, funding has come from investment funds from Morgan Stanley Private Equity Secondaries through an investment vehicle of RunTide Capital. The exact size of this investment has not been disclosed.

Also, Russ Reeder, the current CEO of ATSG, will become the new CEO of the combined company.

Better results for customers

Within the new structure, Evolve IP’s desktop-as-a-service, cloud-based unified communications (UC) and contact center solutions will be combined and integrated with ATSG’s infrastructure-focused managed services.

This should lead to a stronger market position, better customer outcomes, and a larger customer base. Ultimately, the goal is for ATSG to grow into one of the largest privately held managed services platforms with the capacity to create value for its stakeholders.

Evolve IP says the merger represents a “transformative” step for the company and its customers. According to the company, the merger is a testament to its commitment to pioneering within the IT industry and delivering maximum value to customers.

The merger creates a company with more than $230 million combined revenue and nearly 1,700 customers worldwide, totaling more than 950,000 end users. Most of the revenue comes from recurring revenue from long-term customer contracts.

Tip: Evolve IP acquires natural language processing and analytics company