HKW Acquires CMIT Solutions and HTW
INDIANAPOLIS--(BUSINESS WIRE)--Jan 9, 2023--
HKW, a middle-market private equity firm focused on growth companies, has acquired CMIT Solutions LLC (“CMIT”), a leading IT Managed Service Provider (MSP) franchisor, and HTW, Inc. (“HTW”), CMIT’s largest franchisee.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20230109005146/en/
As a rapidly growing IT and cybersecurity organization, CMIT is strongly aligned with HKW’s investment focus. CMIT systemwide surpassed $100 million in revenue in 2022, more than a year ahead of its projected timeline, through a focus on enhanced marketing, sales, and operational efficiencies.
The simultaneous acquisition of HTW will serve as the foundation for a CMIT corporate affiliate that leverages one of CMIT’s top-performing franchisees to serve multi-location accounts and large enterprise customers. A combined CMIT and HTW team of IT and security professionals will provide clients with solutions for larger and more complex projects. Additionally, these resources shared among franchise locations will enable CMIT’s franchisees to better support clients who need specialized expertise. Jason Arabian, Founder of HTW, will join CMIT as Chief Strategy Officer.
“HKW shares our goal of accelerating our company’s growth while creating more value for our clients,” said Roger Lewis, CEO of CMIT. “Their expertise and support will be instrumental as we achieve the next phase of our maturity through new initiatives in marketing, sales, and operations, including adding centralized fulfillment capabilities.”
“The MSP and cybersecurity industry continues to expand as businesses seek solutions to address increasing cyber threats and IT complexity,” Daniel Kim, Partner at HKW, says. “We recognize the tremendous opportunity in front of CMIT and HTW. We’re excited to be part of helping the combined organization build scale to meet the growing demand for technology and security services in the coming years.”
The financial terms of the transaction were not disclosed.
About CMIT Solutions LLC
CMIT Solutions (CMIT) is a leading Managed Services Provider (MSP) franchisor delivering information technology (IT) and cybersecurity solutions to businesses. Through a large network of enterprise-class technology resources, the company supports businesses anywhere in the United States and Canada, and its locally owned franchise model enables CMIT Solutions to serve customers through high-trust, direct relationships. CMIT Solutions offers a wide variety of services and products including IT management and maintenance, cybersecurity monitoring, help desk support, data backup and recovery, and more. The organization has ranked in Entrepreneur magazine’s Franchise 500 ® list for eight consecutive years and is designated as a World Class Franchise by the Franchise Research Institute. For more information on CMIT Solutions, please visit cmitsolutions.com.
HKW is a middle-market private equity firm investing in companies with talented management teams in the US and Canada. HKW targets companies in the Technology, Health & Wellness, and Business Services sectors. Since 1982, HKW has sponsored 69 platform transactions of middle-market companies throughout North America and 75 add-on acquisitions. For more information on HKW, please visit hkwinc.com.
Taft Stettinius & Hollister LLP served as legal advisor to HKW. Cowen, Inc. served as financial advisor to CMIT. Revenue Rocket Consulting Group served as financial advisor to HTW. Senior debt financing provided by LBC Credit Management.
View source version on businesswire.com:https://www.businesswire.com/news/home/20230109005146/en/
CONTACT: Michelle Ball
KEYWORD: UNITED STATES NORTH AMERICA INDIANA
INDUSTRY KEYWORD: PROFESSIONAL SERVICES DATA MANAGEMENT SECURITY TECHNOLOGY SOFTWARE FINANCE CONSULTING
Copyright Business Wire 2023.
PUB: 01/09/2023 09:30 AM/DISC: 01/09/2023 09:30 AM