Ted Nark, Managing Director at KRG, said in a statement, “Over the past five years, we have enjoyed an incredible partnership with Convergint’s industry leading management team. Their outstanding execution of Convergint’s growth strategy has positioned the company as the market leader in electronic security and we are confident they will continue their remarkable track record of growth in the years to come. We wish them all the best with their new financial partner Ares.”
“During our partnership with KRG, the company successfully executed a multi-pronged growth strategy highlighted by consistent investment in its sales team, entering new end markets such as government and banking, and expanding its geographic footprint, including a global expansion in Asia and Europe, through the opening of new office locations and the completion of 19 add-on acquisitions,” said Convergint’s co-founder and executive chairman, Dan Moceri. “We sincerely thank KRG for the incredible partnership we have enjoyed, and we look forward to working with Ares on writing the exciting next chapter in Convergint’s growth story.”
“We are excited to partner with the Convergint management team and look forward to supporting the company in its next phase of growth,” added Matt Cwiertnia, partner and co-head of North American Private Equity at Ares Management, in a separate statement issued by Ares.
Convergint’s string of acquisitions includes Mississauga, Ont.-based TACanada in July 2016 and Windsor, Ont.-based H&E Comfort Controls in April 2016. The company also opened a new Toronto office location that year.
KRG said it partnered with management to recapitalize Convergint in August 2012, and the sale of Convergint represents the 12th successful exit in KRG’s Fund IV.
William Blair served as financial advisor and Hogan Lovells served as legal advisor to Convergint on the transaction.