Norwest Equity Partners has acquired St. Cloud, Minnesota-based Marco, a tech services provider. No financial terms were disclosed.
October 30, 2015 – Marco, Inc., a leading technology services provider headquartered in St. Cloud, Minnesota, announced today that it has been acquired by Norwest Equity Partners (“NEP”), an equity investment firm based in the Twin Cities. The transaction closed on October 30, 2015.
Marco employs 920 people in 42 locations with offices in Minnesota, Illinois, Iowa, North Dakota, South Dakota, Nebraska and Wisconsin. They serve over 25,000 clients throughout these regions and nationally. The company will remain as Marco, a privately-held company, and all employees will retain their jobs.
“We will continue to operate as we always have,” said Marco’s CEO Jeff Gau. “Our company name, office locations and leadership team will remain the same, and our corporate headquarters will remain in St. Cloud. We will continue our ongoing commitment of being a good corporate citizen within the communities we serve and create even more opportunities for our people to build great careers.”
Founded in 1961, NEP is a leading equity investment firm that focuses on partnering with companies to build them into industry leaders. As one of the largest and oldest equity investment firms in the Upper Midwest, NEP has a long-standing history of investment and operational success, experience within the echnology and business services industry, and an extensive network of resources. Marco worked with Twin Cities-based Chartwell Financial Advisory as their financial advisor in originating and negotiating the transaction.
“These were all attractive attributes we considered in selecting the right partner for our next phase of growth,” said Gau. “It was also important to us that NEP shares a common value system and style as it relates to our business. We have built a strong culture at Marco, and we’ll continue to provide our clients with the innovative technology solutions and outstanding service they have come to rely on us for.”
Tim DeVries, NEP Managing General Partner, stated, “Our firm has extensive experience working with companies like Marco, and we are excited to partner with Jeff Gau and his management team to help them continue growing and building into an even stronger company. Jeff is an innovative thought-leader who knows how to not only execute but create value. Marco’s leadership, culture and customer-centric approach were key investment drivers for us. We also appreciate our shared Minnesota roots and long history in our respective businesses. Our partnership with Marco is a great fit.”
In the past three years, Marco has acquired 15 companies and added 430 employees to its workforce. Next year, the company has plans to build a 30,000 square foot building adjacent to its St. Cloud corporate headquarters to support its continued growth. Gau said, “As we continue to expand into other markets, the number of technical support people that work out of our St. Cloud headquarters will increase and more jobs will be created.”
Marco was owned for the last 28 years by an employee stock ownership retirement plan (ESOP). The ESOP will now transition to a 401k retirement plan match for all employees. Marco’s strong client and employee-focused culture has contributed to the company’s ongoing success, and the company, in partnership with NEP, plans to sustain that culture through its next phase of growth.
Marco was recently recognized nationally as one of the top 50 Best Small & Medium Workplaces for 2015 by Fortune magazine. To make the list, employers undergo a significant assessment, including a survey by Great Place to Work to all employees. This is the second consecutive year Marco has received this national award for creating a culture that is admired for its people and performance.
Marco was founded in 1973 and serves over 25,000 customers nationally. Marco provides copiers/printers, business IT services, managed services, hosted/cloud services, carrier services, phone systems, document management and audio/video systems. Learn more at www.marconet.com.
About Norwest Equity Partners (NEP)
NEP has been investing in growing, profitable, and scalable middle market companies since 1961 and has extensive experience working with technology and business services related companies. Representative investments within the sector include Welocalize, GoHealth, Cyber Risk Management, Surgical Information Systems, Amcom Software, Mitchell International, PeopleNet, and Rosetta Stone. Learn more at www.nep.com.