Morgan Stanley Private Equity Secondaries Completes Equity Financing Alongside RunTide Capital in ATSG and Evolve IP
Morgan Stanley Private Equity Secondaries has completed an equity financing to combine ATSG and Evolve IP, creating a leading global IT managed services provider. The merged entity will serve over 1,700 global customers across 950,000 end-users, offering enhanced cloud services, IT managed services, cybersecurity, desktop-as-a-service, and unified communications solutions.
The transaction aims to accelerate ATSG's service capabilities and strengthen the combined organization's ability to address complex technology challenges. Morgan Stanley initially invested in ATSG through a continuation fund transaction alongside RunTide Capital in January 2021.
Morgan Stanley Private Equity Secondaries ha completato un finanziamento azionario per unire ATSG e Evolve IP, creando un fornitore leader globale di servizi IT gestiti. L'entità unita servirà oltre 1.700 clienti globali attraverso 950.000 utenti finali, offrendo servizi cloud avanzati, servizi IT gestiti, cybersecurity, desktop-as-a-service e soluzioni di comunicazione unificata.
La transazione mira ad accelerare le capacità di servizio di ATSG e a rafforzare la capacità dell'organizzazione combinata di affrontare sfide tecnologiche complesse. Morgan Stanley ha inizialmente investito in ATSG attraverso una transazione di fondo di continuazione insieme a RunTide Capital nel gennaio 2021.
Morgan Stanley Private Equity Secondaries ha completado una financiación de capital para combinar ATSG y Evolve IP, creando un proveedor líder mundial de servicios gestionados de TI. La entidad fusionada atenderá a más de 1.700 clientes globales a través de 950.000 usuarios finales, ofreciendo servicios en la nube mejorados, servicios gestionados de TI, ciberseguridad, escritorio como servicio y soluciones de comunicación unificada.
La transacción tiene como objetivo acelerar las capacidades de servicio de ATSG y fortalecer la capacidad de la organización combinada para abordar desafíos tecnológicos complejos. Morgan Stanley invirtió inicialmente en ATSG a través de una transacción de fondo de continuación junto a RunTide Capital en enero de 2021.
모건 스탠리 프라이빗 에쿼티 세컨더리는 ATSG와 Evolve IP를 결합하기 위한 자본 조달을 완료하여 글로벌 IT 관리 서비스 제공업체의 선두주자를 만들었습니다. 통합된 기업은 950,000명의 최종 사용자와 함께 1,700개 이상의 글로벌 고객에게 서비스를 제공하며, 향상된 클라우드 서비스, IT 관리 서비스, 사이버 보안, 데스크톱 서비스 및 통합 커뮤니케이션 솔루션을 제공합니다.
이 거래는 ATSG의 서비스 능력을 가속화하고 통합 조직이 복잡한 기술 문제를 해결할 수 있는 능력을 강화하는 것을 목표로 합니다. 모건 스탠리는 2021년 1월 RunTide Capital과 함께 연속 펀드 거래를 통해 ATSG에 초기 투자하였습니다.
Morgan Stanley Private Equity Secondaries a terminé un financement par capitaux propres pour combiner ATSG et Evolve IP, créant ainsi un fournisseur mondial de services informatiques gérés de premier plan. L'entité fusionnée servira plus de 1 700 clients dans le monde et 950 000 utilisateurs finaux, offrant des services cloud améliorés, des services informatiques gérés, une cybersécurité, un bureau en tant que service et des solutions de communication unifiée.
La transaction vise à accélérer les capacités de service d'ATSG et à renforcer la capacité de l'organisation combinée à relever des défis technologiques complexes. Morgan Stanley a initialement investi dans ATSG par le biais d'une transaction de fonds de continuation avec RunTide Capital en janvier 2021.
Morgan Stanley Private Equity Secondaries hat eine Eigenkapitalfinanzierung abgeschlossen, um ATSG und Evolve IP zu vereinen und damit einen führenden globalen Anbieter von IT-Managed-Services zu schaffen. Die fusionierte Einheit wird über 1.700 globale Kunden betreuen und 950.000 Endbenutzern Dienstleistungen anbieten, darunter verbesserte Cloud-Dienste, IT-Managed-Services, Cybersicherheit, Desktop-as-a-Service und Lösungen für einheitliche Kommunikation.
Die Transaktion zielt darauf ab, die Servicefähigkeiten von ATSG zu beschleunigen und die Fähigkeit der kombinierten Organisation zu stärken, komplexe technologische Herausforderungen anzugehen. Morgan Stanley investierte zunächst im Januar 2021 über eine Fortsetzungsfonds-Transaktion in ATSG zusammen mit RunTide Capital.
- Creation of a larger-scale IT services platform serving 1,700+ global customers
- Expansion of service capabilities through strategic merger
- Enhanced market position in IT managed services sector
- Broader customer reach with 950,000 end-users
- None.
Insights
This strategic merger significantly strengthens ATSG's market position in the IT managed services sector. The combination with Evolve IP creates substantial synergies, expanding the customer base to 1,700 global customers and 950,000 end-users. The deal's value lies in the complementary service portfolios - ATSG's strength in cloud, managed services and cybersecurity pairs well with Evolve IP's expertise in desktop-as-a-service and unified communications.
The transaction structure, utilizing Morgan Stanley's continuation fund mechanism, demonstrates confidence in ATSG's growth trajectory since their 2021 investment. This merger positions the combined entity to capture a larger share of the rapidly growing cloud services market, particularly in the middle-market segment where comprehensive IT solutions are increasingly in demand.
ATSG is a global technology provider for cloud, IT managed services, and cybersecurity, and Evolve IP is a global leader in desktop-as-a-service, unified communications, contact center, and other cloud services. The combined organization will create a leading global IT managed services provider serving over 1,700 global customers across 950,000 end-users. The transaction is expected to accelerate ATSG’s services and solutions capabilities and further enhance the combined entity’s ability to solve customers’ increasingly interconnected and complex technology challenges.
Commenting on the transaction, Dan Wieder, Managing Director at Morgan Stanley Private Equity Secondaries, said: “We are thrilled to partner with RunTide Capital to support a transformational combination of two attractively positioned IT services companies. The combination creates a scaled platform with a best-in-class suite of solutions led by an experienced management team. ATSG has successfully executed on its multi-pronged approach to value creation since our initial investment in 2021. We are excited to use the continuation fund technology in novel ways to provide further support to an existing investment in a leading middle market platform backed by a highly specialized and aligned General Partner.”
Morgan Stanley Private Equity Secondaries investment funds invested in ATSG through a continuation fund transaction, alongside RunTide Capital, in January 2021.
Rob Manning, Partner of RunTide Capital, noted: “We are delighted to further our partnership with Morgan Stanley Private Equity Secondaries through our investment in the ATSG platform. The opportunity to bring together ATSG and Evolve IP marks an exciting new chapter in our IT outsourcing investment thesis. The complimentary portfolios, go-to-market strategies, and technological capabilities will accelerate growth, bringing enhanced services to an even wider global customer base.”
About RunTide Capital:
RunTide Capital is a private equity firm focused on building tech-enabled growth companies. The Founding Partners are seasoned investors with deep operating experience, having started their careers as founders and C-level executives of high growth technology companies. For more information, please visit www.runtidecapital.com.
About ATSG:
ATSG is a leading global managed services provider, delivering award-winning digital transformation services to today’s dynamic enterprises. Its robust portfolio of premium managed services includes Cloud, desktop-as-a-service, Network, Operations, and Cybersecurity services. Headquartered in
About Morgan Stanley Private Equity Secondaries
Morgan Stanley Private Equity Secondaries, an investment team within Morgan Stanley Investment Management, seeks to deliver innovative private market solutions to a global client base. As part of a broader team of 250 dedicated private markets focused professionals, the secondaries business draws on decades of investment experience across private markets. With a focus on single asset GP-led transactions in developed buyout and growth markets, the team structures compelling opportunities within less efficient markets and has deployed
Morgan Stanley Investment Management
Morgan Stanley Investment Management, together with its investment advisory affiliates, has more than 1,400 investment professionals around the world and
About Morgan Stanley
Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide range of investment banking, securities, wealth management and investment management services. With offices in 42 countries, the Firm’s employees serve clients worldwide including corporations, governments, institutions and individuals. For further information about Morgan Stanley, please visit www.morganstanley.com.
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Media Relations:
Morgan Stanley: Alyson Barnes
alyson.barnes@morganstanley.com
Source: Morgan Stanley
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