Synoptek, a portfolio company of Sverica Capital Management LLC, has acquired EarthLink’s IT Services business. Five Points Capital and Portfolio Advisors are also investing. Zions Bank and Comerica are providing debt financing. Atlanta-based Earthlink, in a separate announcement, said the sale impacts approximately 1,700 customers that are serviced through data centers and office locations in the continental US and Canada. Earthlink said it would receive $29 million in proceeds for the business. Bank Street served as EarthLink’s exclusive financial advisor and Troutman Sanders provided legal advice.
SAN FRANCISCO–(BUSINESS WIRE)–Sverica Capital Management LLC (“Sverica”), a private equity investment firm, announced today that its portfolio company, Synoptek, has acquired EarthLink’s IT Services business. The transformative acquisition will strengthen Synoptek’s IT services portfolio, expand their geographic footprint, and continue to fuel Synoptek as one of the fastest growing IT Managed Services Providers (“MSPs”) throughout the U.S. and Canada. The transaction will be financed with equity from Sverica’s Fund IV, Five Points Capital, and Portfolio Advisors, along with additional debt from Zions Bank and Comerica.
“We are enthusiastic about the Synoptek purchase of the EarthLink IT Services business,” said Tim Britt, CEO for Synoptek. “This acquisition helps us continue our mission to become the best independent IT Managed Services Provider in the market, and it supplements our ability to provide expert IT leadership and support services to our customers.”
“We are excited to announce this transaction with a company that has a proven track record of success in the IT services space,” said Joe Eazor, Chief Executive Officer and President of EarthLink. “We have a great IT services team, and they are one of the key reasons Synoptek was interested in acquiring these assets. We completed the transaction knowing they have a vibrant future with Synoptek.”
Sverica initially invested in Synoptek in October 2015 and has supported the company by providing strategic board level oversight, M&A support, and facilitating debt and equity financing which will help fuel continued organic and acquisitive growth.
Synoptek provides information technology management services and support to organizations worldwide. The company offers solutions to manage and operate IT infrastructure using their advanced IT service management (ITSM) capabilities, automated toolsets, and skilled technologists. Synoptek’s trusted team of IT professionals provides superior end user and device management support to improve business performance and success. Synoptek offers a complete suite of managed IT services at the service levels necessary for customers to excel as high performing organizations. For more information, please visit www.synoptek.com.
About Sverica Capital Management
Sverica Capital Management is a leading private equity firm that has raised over $500 million of investment capital across four funds. The firm acquires, invests in and actively builds companies that are, or could become, leaders in their industries. Since 1993, Sverica has maintained a “high touch” operating philosophy of taking an active role in portfolio companies. Sverica devotes significant internal resources to help its management teams develop and execute growth strategies. For more information, please visit www.sverica.com.