Presidio Buyer Sweetens Stock Deal After Second Bidder Emerges

As part of a revised acquisition agreement, private equity firm BC Partners will pay Presidio shareholders 3.75 percent more per share than originally announced in August.

The reason: Presidio, a midmarket IT solutions provider, attracted an alternative takeover bid during a "go-shop" period that ended on September 23. Presidio did not disclose the second suitor's name, but the new bid apparently forced BC Partners to sweeten the pot for Presidio's shareholders.

Presidio's board, in a statement released September 26, recommended that stockholders vote in favor of the BC Partners deal and the amended merger agreement.

Presidio Business Evolution

Presidio has been publicly held and also backed by Apollo Global Management, another private equity firm. The IT solutions provider — a close Cisco Systems, Dell EMC and VMware Cloud on AWS  partner — has pushed hard in recent years into the MSP, cybersecurity and digital solutions markets. In fact, Presidio now ranks among the world’s Top 200 MSSPs for 2019, according to MSSP Alert.

The BC Partners-Presidio deal continues a private equity spending spree across the IT channel — as investment firms snap up IT solutions providers, managed IT service providers (MSPs) and consulting firms that have cloud, digital and cybersecurity expertise.