Evolve IP and ATSG have combined to form a new company.
The deal is expected to significantly increase global cloud, IT managed services and cybersecurity provider ATSG’s services and solutions capabilities, as well as further enhance the combined entity’s ability to solve customers’ technology challenges.
The new organisation will have more than $230 million of revenue and serve more than 950,000 end-users across 1,700 customers, making it one of the largest privately-held managed services platforms. The vast majority of its revenue is monthly recurring revenue under long-term contracts.
ATSG, which is backed by private equity firm RunTide Capital, will have a controlling majority. Investment funds managed by Morgan Stanley Private Equity Secondaries, through a vehicle managed by RunTide Capital, provided the equity financing to complete the deal.
ATSG expects to integrate solutions from both companies into a broader and stronger managed services portfolio to help mid-and-enterprise customers, and support the further development of EMEA partnerships and the global white-label business.
The tie-up will enable the combined company to expand its market presence and create greater value by using pooled assets, resources, expertise and ATSG’s platform of intellectual property.
Russ Reeder, CEO of ATSG and the go-forward CEO of the combined company, said, "Evolve IP offers an innovative, market-leading suite of desktop-as-a-service, cloud-communications, and contact centre solutions. 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.”
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 and partners of Evolve IP.”
Paul Harrison, EMEA managing director of Evolve IP, said, “The opportunity this combination brings to our EMEA partners is transformative. Having the combined knowledge and financial support of ATSG will enable us to accelerate our growth even further and build upon our success of recent years, growing our presence in the channel globally and developing the Evolve IP brand across EMEA.
“This is great news for our partners as ATSG brings further skills, funding and leading technologies to the table. Allowing partners to grow their businesses and further develop their service offering as an Evolve IP partner.”
The combination will unite ATSG’s infrastructure-centric managed services with Evolve IP's cloud communications-centric managed services, enabling the combined business to deliver a greater suite of end-to-end services to its customer base.
The combined entity will also prioritise service, cutting-edge solutions, IP and consistent, proactive user engagement to ensure customer satisfaction and loyalty.
In addition, it will centralise talent from both companies, amassing a leadership team with a shared vision and a strong track record.