Stelligent is Acquired by Hosting
Stelligent was a DevOps professional services company with a specialty in Amazon Web Services. A co-founder was a recognized AWS thought leader, and the firm was growing quickly while remaining profitable. It was receiving unsolicited buyout offers, and decided to run an orderly M&A process.
At the time Private Equity firms were investing substantially in the sector and consolidating it quickly, looking toward exits to large IT companies that were expanding their global footprints. The PE firms had largely acquired their platform companies, and were seeking to expand their size and capabilities through bolt-on acquisitions. MSG launched a controlled offering where forty PE firms and companies were contacted.
Interest in Stelligent was substantial. MSG provided potential buyers with guidance on desired key terms and worked through the numerous proposals to produce three differentiated offers that would give Stelligent management diverse options. Those three were asked to re-bid their offers to drive the valuation higher. A “clean” all-cash, no holdback or escrow, and no earnout and performance metrics bid from Hosting a platform company of Pamlico Capital, a multi-billion dollar Private Equity firm was accepted.