Potomac Equity makes 7.5x on Orion Systems sale

Potomac Equity Partners LLC said Oct. 22 that it sold Orion Systems Integrators LLC to One Equity Partners. Orion Systems, of Edison, New Jersey, provides IT services to Fortune 1,000 and other enterprise clients. Potomac said it make 7.5x its invested capital with the sale, which generated a 74 percent IRR for investors. William Blair advised Orion while Perkins Coie LLP served as legal counsel.

PRESS RELEASE

WASHINGTON–(BUSINESS WIRE)–Potomac Equity Partners, LLC (“Potomac Equity”), a Washington, D.C.-based investment firm with extensive experience investing in the technology sector, today announced the sale of its portfolio company Orion Systems Integrators, LLC (“Orion”), a rapidly growing global technology solutions and services provider, to One Equity Partners.
Orion achieved significant scale and growth during Potomac Equity’s four-year partnership, increasing the number of Orion employees to 1,600 today and tripling operating profits. As a result of this significant growth, Orion’s investor Potomac Equity and the Orion management team all meaningfully benefited. While the terms of the sale to One Equity were not disclosed, Potomac Equity achieved a 7.5x multiple of invested capital (MOIC) and 74% internal rate of return (IRR) for its investors, with the opportunity for additional cash returns tied to Orion’s future performance.
Headquartered in New Jersey with a global workforce of approximately 1,600 employees located in eleven offices spanning four continents, Orion provides a full range of IT services, creating mission-critical solutions through end-to-end business transformation and automation, data and analytics, and cloud solutions and infrastructure services to Fortune 1,000 and other enterprise clients. The company serves as a strategic partner to numerous blue-chip enterprise customers in the financial services, communications, media, entertainment, healthcare, and education industries. Through its U.S. base and international operations in Australia, Canada, Germany, and India, Orion has the ability to cost-effectively guide Fortune 1,000 enterprise customers through complex and mission-critical digital transformations.
John Bates, Founder and Partner of Potomac Equity Partners, remarked, “We have enjoyed our partnership with Orion and its management team over the last four years. When we were proactively searching for IT services investment opportunities to capture sector growth, we were impressed by Orion’s capabilities and the depth of its customer relationships, and believed that the company’s positioning, market-leading solutions, and management team could drive above market returns. Our investment thesis behind our partnership with Orion has been more than rewarded, and we are ecstatic with the exceptional returns that Orion has delivered for the investors.”
Sunil Mehta, Orion’s Founder and Executive Chairman, stated, “Orion has grown significantly and repositioned itself during its partnership with Potomac Equity. When I was looking for a partner, Potomac Equity stood out with its collaborative approach, industry insights, and network of relationships to benefit Orion. Potomac Equity has been a key contributor to Orion’s success, making numerous customer introductions, sourcing and executing two add-on acquisitions, helping add key senior management team members, and serving as a critical sounding board for Orion as we grew.”
Raj Patil, Orion’s CEO, remarked, “It has been great to work with the Potomac Equity team. Their strategic advice and expansive industry contacts have been invaluable to our team. Additionally, their willingness to roll up their sleeves and work thoughtfully and creatively with the management team to help identify and execute on the right strategic paths forward has been a welcome part of our partnership.”
William Blair & Co. served as financial advisor to Orion in the transaction, and Perkins Coie LLP provided legal counsel to Orion.
About Potomac Equity Partners, LLC
Potomac Equity Partners is a Washington, D.C.-based private equity investment firm focused on providing superior equity returns through the close partnership and collaboration with its portfolio company management team members. The firm strives to invest in companies with leading products and services, superior management teams, and in which its invested capital and collaborative efforts can enable companies to exponentially ramp their long-term growth prospects and overall performance. The principals of Potomac Equity Partners have a long and successful history of investing with management teams across a wide range of industries including software and technology, education and training, information services, and healthcare. For more information, visit www.potomacequitypartners.com.
About Orion Systems Integrators, LLC
Founded in 1993 and headquartered in New Jersey, Orion is a global provider of IT solutions and services to the Fortune 1,000 and other large enterprise clients. The Company serves as a strategic IT partner for leading financial services, communications, media, entertainment, healthcare, and education organizations. Orion delivers solutions across data, analytics, enterprise collaboration, risk and compliance, knowledge management and the cloud. Orion’s ability to service a broad range of clients using its blended engagement models has resulted in delivering cutting edge and cost-effective solutions to its clients, and the company has experienced revenue growth in 24 of the 25 years since its founding. For more information, visit www.orioninc.com.
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