SCHAUMBURG, Ill. — KRG Capital Partners, a Denver, Colo.-based private investment firm, has taken an equity stake in systems integrator Convergint Technologies. Terms of the deal were not disclosed.
The new partnership between the two companies will help Convergint increase its organic growth and pursue acquisitions that will bolster the firm’s geographic coverage, Convergint Co-founder and CEO Dan Moceri tells SSI.
“While Convergint will continue to fund growth from operations, KRG gives us the ability to pursue larger investments,” he says. “Additionally, we will be able to expand our IT-based offerings to our customers and provide more holistic security protection.”
Convergint Technologies is a service-based integrator of electronic security, fire alarm, life-safety, building automation and health-care technology systems. With offices in 26 cities throughout the United States and Canada, the company serves 10,000 customers (70% commercial, 30% strategic accounts), and employs more than 1,100 workers.
Since its inception 11 years ago, Convergint Technologies has experienced uninterrupted growth, with 21% year over year growth throughout the recession, Moceri says. So why did the company decide to collaborate with a private equity firm?
“We were looking to recapitalize our current debt,” Moceri explains.
Convergint hired William Blair & Company to search for a capital partner that could assist in aggressively expanding the company’s North American footprint and continue moving the company to delivering value-added services. KRG Capital was selected in part because it has investments in other electronic security firms and has in-depth knowledge about the sector. The investment firm specializes in acquiring interests in middle-market companies and growing them into significantly larger enterprises through the combination of internal growth and selective strategic add-on acquisitions.
“We are very excited to be part of the Convergint Team,” KRG Capital Managing Director Ted Nark says. “They have a successful track record of growth, an outstanding Fortune 500 customer base and is a market leader in their industry.”
Ashley Willis is associate editor for SECURITY SALES & INTEGRATION magazine. She can be reached at (310) 533-2419.