Ares Management Corporation on Thursday announced that Leonard Green & Partners (LGP) and Harvest Partners have purchased equity in systems integrator Convergint Technologies from a fund managed Ares Private Equity Group and other shareholders. As a result of the transaction, Ares, LGP and Harvest will be financial partners with the Convergint.
Headquartered in Illinois, Convergint works alongside a global network of partners and manufacturers to design, install and service security, fire alarm, life safety, audio-visual and building automation solutions for enterprise customers. The company maintains a global footprint with more than 7,100 employees in over 150 locations worldwide.
Closing more than 50 acquisitions since 2001, Convergint has significantly deepened its vertical market expertise across numerous sectors, particularly in data centers, utilities, healthcare and financial services. At the same time, the company has expanded its global reach, allowing it to better serve multinational customers across the globe. With Ares’ sponsorship, Convergint has experienced strong growth with revenue and EBITDA more than doubling since 2017.
“We are pleased that LGP and Harvest are joining Ares as financial partners in Convergint. This transaction underscores the strength of the Company, its management team and its growth strategy,” said Matt Cwiertnia, Partner and Co-Head of Ares’ Private Equity Group and Chairman of the Convergint Board of Directors. “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. 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 has generated strong momentum through its innovative approach to driving growth, and its deep commitment to its customers, colleagues and communities,” said Abraham Zilkha, Partner in Ares’ Private Equity Group and member of the Convergint Board of Directors. “We much look forward to continuing to support Convergint in capitalizing on the significant growth opportunities ahead for the company as a leader in a dynamic industry."
“We could not have had any better partner than Ares over the past four years. With every important decision, Ares made sure that we remained focused on one guiding factor: do what is best for Convergint, our customers, and our colleagues,” said Ken Lochiatto, CEO of Convergint. “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.”
"We feel Convergint is well positioned for long-term success," said John Danhakl, Managing Partner at Leonard Green & Partners. "Convergint’s strong, values-based culture and reputation for customer service excellence combined with its best-in-class management team and significant capabilities and footprint in the global security industry position the Company for meaningful future growth. 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."
“Ken and the founders have built a global leader with a unique and winning culture that runs deep through the organization. Convergint’s differentiated culture has been a key driver of its long-term success and we are thrilled to work alongside Ares, LGP, and the outstanding leadership team on the next chapter of growth,” said Steve Carlson, Partner at Harvest Partners, who will join Convergint’s Board of Directors.
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.
