SEWICKLEY, PA, April 14, 2014 -- Cogent Growth Partners, LLC (Cogent) announced today that they advised Brook Venture Partners with co-investors Blue Heron Capital, an operationally focused private equity firm based in Richmond, VA and Prides Crossing Capital of Wakefield, MA, in an investment in PC Network Services, Inc. (PCNS), a full service provider of outsourced IT solutions and managed services. The investment will further support PCNS as it aims to grow the service capabilities and geographic presence.
In conjunction with the investment, PCNS also announced today that Michael Halperin has been named CEO. Michael has over 15 years of executive experience, including Fortune 100, Small-and-Medium Businesses (SMBs) and start-up firms. Michael has been named one of the top 250 most influential people in the Managed Services industry worldwide four times, and led a Managed Services practice twice named one of the top 100 Managed Service Providers worldwide.
“We are excited about the investment in PCNS, as they have a fantastic service record with their customers and we believe there is excellent growth potential for the company,” said Fred Morris, Partner at Brook Venture. “The outsourced IT market is highly fragmented and regional, present ing an outstanding opportunity to expand the company’s geographic reach and industry-leading service excellence.”
PCNS holds an exceptional reputation in providing managed services, end user support, cloud services and hardware & software products. In 2014, the company has been named to the MSPmentor Top 200 Managed Service Providers in North America. PCNS has customers across a variety of industries including legal, manufacturing, financial, non-profit and a number of other industries.
“Our investment in PCNS and partnership with management and Brook Venture Partners is very positive for our investors," added Jim Cheng, who will be representing Blue Heron Capital on the board of the company. "We believe PCNS has a tremendous brand and leading market position based on its unparalleled operational expertise and service delivery.”
“This transaction represents a current trend in fund backed deals involving IT services companies,” stated George Sierchio, Vice President and Senior Partner at Cogent. “Firms of PCNS’ size and larger having a recurring revenue centric business model that is consistently beating the industry average gross margins and bottom line income are in high demand to private equity firms investing in the IT industry.”
Cogent Growth Partners (www.cogentgrowthpartners.com) is a buy-side merger & acquisition advisory firm that combines IT industry-specific transaction know-how with deep operational expertise, to work exclusively with clients in the IT and Managed Services industry. Cogent helps create superior companies that deliver exceptional financial results and improved equity value for the owners – all while mitigating many of the risks associated with planning and executing acquisition or exit strategies.
About Brook Venture Partners
Brook Venture Partners (www.brookventure.com) provides expansion stage capital through Brook venture Fund I,Brook Venture Fund II and Brook Partner Funds I, II, III to Information Technology and Medical Technology companies located in the eastern United States. The firm focuses on acquisition investment of $5-10 million and specializes in both financing and providing the strategic and planning support necessary to manage growth. Brook is headquartered outside Boston in Wakefield, MA.
About Blue Heron Capital
Blue Heron Capital (www.blueheroncap.com) is an operationally focused lower market private equity firm based in Richmond, Virginia. Blue Heron supports portfolio companies with a team of proven industry experts, including C-level executives and successful entrepreneurs with decades of experience building and managing vibrant businesses. The firm invests in buyout and growth equity opportunities in the healthcare, security, and business services industries. .
About Prides Crossing Capital
Prides Crossing Capital provides senior and subordinated debt financing to lower middle market companies. To learn more, please visit www.pridescrossingcapital.com.
About PC Network Services, Inc.
PCNS, based in Sewickley, PA, provides outsourced IT services for firms in the SMB market utilizing cloud and virtual services.
Media Contact: George Sierchio, Cogent Growth Partners, 973-542-4020 firstname.lastname@example.org
Posted on Apr 10, 2014