Morgan Stanley and RunTide Capital Unite to Enhance IT Services
Transformational Partnership in IT Services
In a significant development within the technology sector, Morgan Stanley Private Equity Secondaries, in collaboration with RunTide Capital, has successfully completed an equity financing aimed at merging ATSG and Evolve IP. This strategic move highlights the growing trend of consolidation among leading IT service providers, creating a robust entity poised to offer expansive digital solutions.
Expanding Service Capabilities
ATSG is renowned as a global technology provider specializing in cloud services, IT management, and cybersecurity solutions. Evolve IP complements this by excelling in desktop-as-a-service and unified communications. Together, they are set to form a premier IT managed services company catering to over 1,700 customers around the world, supporting 950,000 end-users. Such a merger signifies a major step forward in addressing the complex technology challenges confronting businesses today.
Industry Insights
The integration of ATSG and Evolve IP is more than just a merger; it’s about enhancing technological capabilities and expanding global reach. The combined strength of these two companies promises to deliver advanced solutions that are scalable and tailored to meet the evolving demands of various industries, reflecting a key focus on customer-centric service delivery.
Quote from Leadership
Dan Wieder, Managing Director at Morgan Stanley Private Equity Secondaries, expressed enthusiasm for this partnership. He stated, "We are thrilled to partner with RunTide Capital to support a transformational combination of two attractively positioned IT services companies. The combination creates a scaled platform with a best-in-class suite of solutions led by an experienced management team." This positive outlook underscores the potential benefits this merger could offer to stakeholders and clients alike.
Investment Rationale
The investment made by Morgan Stanley Private Equity Secondaries in ATSG through a continuation fund echoes their confidence in ATSG’s strategic vision and growth potential. Having previously invested in 2021, the firm sees tremendous opportunity in effectively leveraging technology to create innovative solutions that cater to a diverse client base.
RunTide Capital's Role
Rob Manning, Partner at RunTide Capital, highlighted the value of this partnership, remarking, “We are delighted to further our partnership with Morgan Stanley Private Equity Secondaries through our investment in the ATSG platform. The merger signals an exciting new phase in our IT outsourcing investment strategy.” His comments reflect a shared vision of growth and enhanced service offerings stemming from this alliance.
Vision for Growth
The strategic fusion between ATSG and Evolve IP not only underscores their commitment to superior service but also highlights a shared goal of harnessing technology for growth. The companies' combined technological strengths and aligned market strategies will undoubtedly contribute to a broader global footprint.
Commitment to Innovation
Both ATSG and Evolve IP are dedicated to continuous innovation and improvement in their offerings. This merger reflects a unified commitment to develop state-of-the-art technology and services that not only meet customer expectations but also lead the industry in effective solutions for the digital age.
About RunTide Capital
RunTide Capital specializes in nurturing tech-enabled growth companies, with a leadership team composed of experienced investors and former executives from high-growth technology sectors. Their strategic focus is on developing innovative solutions that fuel further expansion in the tech landscape.
About ATSG
ATSG stands out as a premier global managed services provider, dedicated to transforming enterprises through digital solutions. With a strong emphasis on cloud services, desktop-as-a-service, and cybersecurity, ATSG continues to forge its path as a leader in delivering essential IT services.
About Morgan Stanley Private Equity Secondaries
Morgan Stanley Private Equity Secondaries operates within the vast framework of Morgan Stanley Investment Management. This team aims to provide unique private market solutions, relying on their robust experience to identify and capitalize on compelling investment opportunities in the IT and technology sectors.
Frequently Asked Questions
What is the significance of the ATSG and Evolve IP merger?
The merger aims to create a leading global IT managed services provider that offers enhanced solutions to meet complex customer needs.
How does Morgan Stanley Private Equity Secondaries contribute to the merger?
Morgan Stanley Private Equity Secondaries provides essential equity financing to facilitate the merger, emphasizing their commitment to supporting growth in the technology sector.
What advantages does this merger offer to customers?
Customers will benefit from a wider array of technological solutions, improved service delivery, and a more robust support system through the combined expertise of ATSG and Evolve IP.
What is RunTide Capital's involvement in this merger?
RunTide Capital's involvement includes investment and strategic support, leveraging their experience in building tech-enabled growth companies.
How will the merger impact the IT services market?
The merger is expected to accelerate growth and innovation in the IT services market, providing enhanced capabilities to meet evolving business demands and customer expectations.
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