Combined company to drive innovation and client success with over $230M in revenue and over 1,700 customers

NEW YORK, Oct. 31, 2024 /PRNewswire/ -- ATSG, a global technology provider for cloud, IT managed services, and cybersecurity today announced it has completed a transaction to combine with Evolve IP, a global leader in desktop-as-a-service, unified communications, contact center, and other cloud services. The transaction is expected to significantly accelerate ATSG's services and solutions capabilities and further enhance the combined entity's ability to solve customers' increasingly interconnected and complex technology challenges. The combined organization will have more than $230 million of revenue and serve over 950,000 end-users across 1,700 global customers. The vast majority of the combined company's revenue is monthly recurring revenue under long-term contracts.

ATSG, who will have a controlling majority, is backed by RunTide Capital, a private equity firm focused on building tech-enabled growth companies. Investment funds managed by Morgan Stanley Private Equity Secondaries, through a vehicle managed by RunTide Capital, provided the equity financing to complete the combination between ATSG and Evolve IP.

ATSG expects to integrate solutions from both companies into a broader and stronger managed services portfolio benefiting mid-and-enterprise customers. The adjacent, but highly accretive nature of each company's standalone service offerings will enable the combined business to better serve its customers. As two customer-centric organizations, the combination of ATSG and Evolve IP will enable the combined company to expand its market presence and create greater value by harnessing pooled assets, resources, expertise, and leveraging ATSG's platform of rich intellectual property. ATSG is known for exceptional customer service delivered by highly technical and passionate employees. The combined organization will seek to transform customers into evangelists, driving organic growth and cementing its position as an end-to-end managed services provider and continue to win in numerous industry verticals.

"Evolve IP offers an innovative, market-leading suite of desktop-as-a-service, cloud-communications, and contact center solutions. Combined with ATSG's infrastructure-centric managed services, we will strengthen our collective position in the market and provide better outcomes for our combined base of customers," said Russ Reeder, CEO of ATSG and the go-forward CEO of the combined company. "By combining with Evolve IP, not only are we combining our collective expertise, culture, and services, we're also positioning ATSG to emerge as one of the largest privately-owned managed services platforms with an ability to drive value for all of our stakeholders."

"This journey marks a transformative step forward for Evolve IP and all of our customers," said Jeff Coursen, CEO of Evolve IP. "This aggregation of our talent, tools, and resources is a testament to our commitment to pioneering the industry and will enable us to offer maximum value for our customers. We are looking forward to leveraging ATSG's rich platform of intellectual property and suite of services capabilities to deliver an increasingly end-to-end solution for our customers."

Key Highlights of the Combination:

• Expanded Capabilities: The combination will unite ATSG's infrastructure-centric managed services with Evolve IP's desktop-as-a-service and cloud communications-centric managed services, enabling the combined business to deliver a greater suite of end-to-end services to the combined business' customer base.
• Customer-Centric Approach: With a focus on turning customers into brand evangelists, the combined entity will prioritize exceptional service, cutting-edge solutions, unique IP, and consistent, proactive user engagement to ensure customer satisfaction and loyalty.
• Gartner Recognition: ATSG has been recognized as a Leader in the Gartner Magic Quadrant for Managed Network Services and a Challenger in the DaaS Magic Quadrant, highlighting the company's commitment to delivering trailblazing solutions across multiple service areas.
• Significant Scale: The transaction will immediately make the new organization one of the largest privately-held managed services platforms and position the combined business for continued strong organic and inorganic growth.
• Leadership Team: The combination will centralize top talent from both companies, amassing a leadership team with a shared vision and a robust, proven track record of significant results.

Advisors

Guggenheim Securities, LLC served as financial advisor and sole private placement agent to ATSG and Morgan Lewis and Bockius LLP served as legal advisor to ATSG. Rothschild & Co served as financial advisor to Evolve IP and Choate, Hall & Stewart LLP served as legal advisor to Evolve IP.

About the Combination

With combined revenues of over $230 million and a global base of 1,700 customers, the combined company will be dedicated to driving innovation, enhancing customer experiences, and fostering a culture of scalability and growth. The combined company will offer a comprehensive platform of managed IT services designed to meet the evolving needs of businesses in a dynamic technological landscape.

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 Manhattan, New York, ATSG is a portfolio company of RunTide Capital, a private equity firm focused on building tech-enabled growth companies.

About Evolve IP

Evolve IP is a leading provider of essential cloud-based communications and desktop-as-a-service solutions supporting distributed workforces. Designed from the beginning to provide organizations with a unified option for cloud services, Evolve IP enables decision-makers to migrate all or select IT technologies to its award-winning cloud platform. Evolve IP's combination of security, stability, scalability, and lower total cost of ownership is fundamentally superior to outdated legacy systems and other cloud offerings. Today the company's services include unified communications, contact center, and virtual desktops.

For more information, please contact:
Dan Brennan
ICR
[email protected]

SOURCE ATSG