BOSTON, May 25, 2017 /PRNewswire/ -- BV Investment Partners ("BV"), a middle-market private equity firm focused on the business services and IT services sectors, today announced it has reached an agreement to sell TriCore Solutions, a leading provider of application and infrastructure managed services, to Rackspace®, a leading managed cloud services provider headquartered in San Antonio, Texas. The sale price was not disclosed and the transaction is expected to close in June.
Based in Norwell, MA and founded in 1999, TriCore is a leader in the management of enterprise applications, focused predominantly on enterprise resource planning, business intelligence and analytics, and data warehousing and integration.
BV, which has a successful history of investing in the IT services sector, invested in TriCore in 2014 in partnership with the existing management team. Since that time, the company has benefited from accelerated growth in its existing core markets, expansion into SAP and other complementary application markets, and growth in Business Intelligence and Data Warehousing managed service offerings. In addition, the firm helped identify and complete several strategic acquisitions during its ownership.
Matt Kinsey, Managing Director of BV, said, "From day one, TriCore was a high quality asset with an exceptional management team, providing an application hosting service early in its demand trajectory. We are pleased to have partnered with Founder and Chairman Bob Forman, CEO Mark Clayman, CFO Art Green, and the entire TriCore team in this investment. The team and company accomplished the growth strategy and objectives we developed in just two and a half years, more than doubling earnings and broadening its addressable market. We are delighted to achieve a successful outcome for our investors through this transaction and excited for the next phase in the company's growth."
Mark Clayman, CEO of TriCore, said, "Working with BV, we have broadened our reach, expanded our solution set and invested in our team, creating a platform that provided us with sustainable advantages over other competitors in the marketplace. Rackspace's acquisition is a strong validation of our company's efforts to build a leading provider of application managed services."
Sean Wilder, Principal of BV, said "We are proud of the accomplishments TriCore has made during our involvement, including the successful integration of three key add-on investments, which expanded the business into SAP and added new database offerings. We believe TriCore is well positioned to continue to capitalize on growth in outsourced application hosting and are confident that the company will continue to thrive as an integral part of Rackspace."
BV recently completed the close for BV Investment Partners Fund IX at its $750 million hard cap, well above its $600 million target. The firm launched Fund IX in mid-January 2017.
Lumerity Capital is a co-investor in TriCore alongside BV. William Blair served as financial advisor to BV.
About TriCore Solutions
TriCore Solutions, the application management experts, provides a full suite of scalable and reliable managed application, cloud and infrastructure hosting, and consulting services to enterprise organizations. With 18 years of experience, the Company delivers its services and the TriCore Trusted Promise to more than 275 mid-market to small enterprise companies to reduce costs, raise service levels, improve customer experience, increase business agility, and accelerate innovation, unlocking the business value from their IT investments. Our partners include industry leaders such as Oracle, SAP, Microsoft, AWS, and HP. TriCore Solutions is headquartered in Norwell, MA, with offices in India and throughout North America. For more information, please visit www.tricoresolutions.com and @tricorenow on Twitter.
About BV Investment Partners
BV Investment Partners is currently investing its ninth private equity fund. The firm is one of the oldest and most experienced sector-focused private equity firms in North America. Since its founding in 1983, the firm has invested over $2.9 billion in 89 companies, actively targeting investments in the business services and information technology services industries. For more information, please visit www.bvlp.com.
Contact: Chris Tofalli
Chris Tofalli Public Relations, LLC
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SOURCE BV Investment Partners