Ares Sells Stake in Convergint to Leonard Green and Harvest Partners

As a result of the transaction — terms were not initially disclosed — Ares, LGP and Harvest will be financial partners with the company.

SCHAUMBURG, Ill. — Ares Management Corp. (NYSE: ARES) and Convergint Technologies announce that Leonard Green & Partners (LGP) and funds managed by Harvest Partners have purchased equity in Convergint from a fund managed by Ares’ Private Equity Group and other existing shareholders.

As a result of the transaction — terms were not initially disclosed — Ares, LGP and Harvest will be financial partners with the company.

Based here, Convergint is a leader in service-based systems integration, working alongside a global network of partners and manufacturers to design, install and service security, fire alarm, life safety, A/V and building automation solutions for enterprise customers. Convergint maintains a global footprint with more than 7,100 colleagues in over 150 locations worldwide.

Closing more than 50 acquisitions since 2001, the company has significantly deepened its vertical market expertise across numerous sectors, particularly in data centers, utilities, healthcare and financial services. At the same time, the Convergint has expanded its global reach, allowing it to better serve multinational customers across the globe.

The company is also broadening its digital transformation solution offerings, investing in innovation to meet customers’ evolving needs. With Ares’ sponsorship, the company has experienced strong growth with revenue and EBITDA more than doubling since 2017, according to the announcement.

“Over the course of Ares’ nearly four-year partnership with Convergint, we have closely collaborated to help the company achieve strong growth, including notable expansion in sectors, services and geographies,” states Matt Cwiertnia, partner and co-head of Ares’ private equity group and chairman of the Convergint Board of Directors. “We are proud that Convergint has been a meaningful champion for positive change by fostering a diverse, inclusive and socially responsible culture, which has benefited the business as a whole in addition to its colleagues, communities and stakeholders.”

Convergint CEO Ken Lochiatto comments, “Ares’ strength and confidence helped us accelerate our investments for growth, and their help has been tremendous as we have worked to expand our inclusion and diversity efforts and further strengthen our culture and our commitment to our founding Values and Beliefs. They have provided leadership and insights that have helped us make meaningful progress, and we are grateful for their continued support and guidance.”

John Danhakl, managing partner at Leonard Green & Partners, says Convergint is well positioned for long-term success given the company’s strong, values-based culture and existing management team. “We look forward to continuing to build on Convergint’s strong foundation as the world’s premier systems integrator, while generating value to all of its stakeholders,” he adds.

William Blair, Harris Williams and J.P. Morgan served as financial advisors, and Kirkland & Ellis LLP served as legal advisor to Ares and Convergint. Latham & Watkins LLP served as legal advisor to LGP. Ropes & Gray LLP served as legal advisor to Harvest.

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