Apollo Funds to Acquire Trace3: Transforming Technology Solutions
Apollo Funds Expand Their Horizon with Trace3 Acquisition
In a significant development, Apollo Funds have agreed to acquire Trace3, a leading provider of technology solutions, from American Securities. This acquisition aims to bolster Trace3's market position and enhance its offerings to clients. While financial terms of the deal remain undisclosed, American Securities will continue to hold a minority equity interest in Trace3, reflecting their commitment and belief in the company’s future.
A Deep Dive into Trace3’s Capabilities
Founded in 2002, Trace3 has positioned itself as a crucial player in digital transformation and IT solutions. Serving numerous Fortune 500 companies, the organization specializes in various areas, including artificial intelligence, cloud computing, security, data analytics, and managed services. With a robust portfolio, Trace3 is well-equipped to assist businesses in navigating the growing demand for next-generation IT infrastructure.
Commitment to Innovation and Growth
Rich Fennessy, the Chief Executive Officer of Trace3, emphasized the partnership with Apollo as a testament to their established brand reputation and growth record. He mentioned that this alliance would not only accelerate Trace3's growth trajectory but also preserve its unique culture, ensuring it continues to attract top talent in technology.
Market Opportunities in AI
Robert Kalsow-Ramos, a Partner at Apollo, highlighted the potential opportunities within the AI space as integral to Trace3's future. The collaboration aims to enhance high-value service offerings and strategically pursue mergers and acquisitions to foster growth. This signals a shift towards enhancing their portfolio in response to the evolving market landscape.
Acknowledging the Growth of Trace3
American Securities has played a pivotal role in Trace3's journey, with Kevin Penn, Managing Director at American Securities, praising the management team for their capability to scale the business effectively. The partnership between Apollo and American Securities is expected to bring continued support, reinforcing a strategy that emphasizes sustained growth and innovation.
Investment Experience of Apollo
Apollo's investment expertise in the IT services and distribution sector is well documented, with successful previous investments in companies like Presidio and TD SYNNEX. This background positions them uniquely to drive Trace3’s future initiatives effectively.
Looking Ahead: Strengthening Client Relationships
The upcoming acquisition is subject to customary closing conditions and regulatory approvals. The partnership between Apollo and Trace3 signifies a strong commitment to advancing technology solutions and meeting the increasing demands of their client base.
Citi acted as the lead financial advisor for this transaction, with Wells Fargo and Royal Bank of Canada also providing advisory services. Legal counsel for Apollo was provided by Paul, Weiss, Rifkind, Wharton & Garrison LLP.
About Trace3
Trace3 stands out as a provider of advanced technology consultation and IT solutions since its inception in 2002. By empowering organizations through exceptional expertise and innovative approaches, Trace3 helps businesses embrace digital transformation. Their diverse range of services includes artificial intelligence, data insights, cloud solutions, and security consulting.
About Apollo
Apollo operates as a global alternative asset manager, focusing on innovative investment solutions that cater to a wide spectrum of client needs. With approximately $840 billion in assets under management, Apollo specializes in various investment avenues, including private equity and credit.
About American Securities
American Securities is a well-regarded private equity firm based in the U.S., focusing on market-leading companies within North America. With around $23 billion in assets under management, they invest in companies generating significant revenues, emphasizing operational excellence and strategic growth.
Contacts
Apollo
Noah Gunn
Global Head of Investor Relations
Apollo Global Management, Inc.
(212) 822-0540
IR@apollo.com
Joanna Rose
Global Head of Corporate Communications
Apollo Global Management, Inc.
(212) 822-0491
Communications@apollo.com
Trace3
Jill Simpson
Manager, Public Relations
(269) 930-0912
Jill.simpson@trace3.com
American Securities
Joshua Rosen / Nick Kyriacou
Prosek Partners
pro-americansecurities@prosek.com
Frequently Asked Questions
What is the significance of Apollo acquiring Trace3?
This acquisition strengthens Apollo's position in the technology solutions sector, enhancing Trace3’s capabilities and innovation potential.
How does Trace3 benefit from this acquisition?
Trace3 gains access to Apollo's expertise and resources, which can accelerate its growth and service offerings in digital transformation.
What areas does Trace3 specialize in?
Trace3 specializes in cloud services, AI, security, data analytics, and managed IT solutions for commercial clients.
Who were the financial advisors for this transaction?
Citi served as the lead financial advisor, with additional support from Wells Fargo and Royal Bank of Canada.
What is Apollo’s investment focus?
Apollo focuses on providing innovative investment solutions across various sectors, including private equity and alternative investments.
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