VSS Capital Partners Completes Successful Sale of Coretelligent, LLC to Norwest Equity Partners
NEW YORK – October 25, 2021 – VSS Capital Partners (“VSS”), a private investment firm investing in the healthcare, information, business services and education industries, today announced that it has completed the sale of Coretelligent (“the Company”) to Norwest Equity Partners. Terms of the transaction were not disclosed. Coretelligent is a leading provider of comprehensive managed IT, cybersecurity, and cloud services to customers within the financial services, life sciences, professional services, and related sectors. VSS will participate in Coretelligent’s next phase of growth as a minority investor in the Company.
Headquartered in Westwood, MA., Coretelligent is a leading provider of comprehensive managed and co-managed white glove IT support, cybersecurity, backup and disaster recovery as well as cloud services. Founded by Kevin J. Routhier in 2006, Coretelligent provides top-tier organizations with the services they need to thrive in today’s digital economy.
During VSS’s five-year investment period, Coretelligent grew significantly, with revenue and EBITDA each growing by well over 150%, following robust internal and acquisition-related growth initiatives.
“We would like to thank VSS for being an incredibly supportive partner who helped us build a uniquely scalable platform providing best-in-class Managed and Co-Managed IT services (“MSP”), seamless cybersecurity and private cloud services in the fragmented MSP market,” said Routhier. “VSS helped to accelerate Coretelligent’s growth trajectory beyond our expectations and positioned us to succeed in the highly competitive MSP market. We’re excited about the opportunities that lay ahead for our talented professionals as we transition ownership.”
VSS invested in Coretelligent in 2016. Partnering with management, VSS focused on several value creation initiatives that included scaling the Company’s sales and operations to accelerate its financial performance while identifying strategic acquisitions to drive inorganic growth and geographic expansion. The Company subsequently made three acquisitions of highly complementary businesses – Soundshore Technology Group, United Technology Group, LLC and SoundView IT Solutions, LLC – that allowed it to expand geographically into the Southeast and other fast-growing markets.
“We are proud of what we have accomplished during our partnership with CEO Kevin Routhier and his team at Coretelligent, which speaks to VSS’s ability to maximize the long-term value and success of our portfolio companies by working closely with management,” said Trent Hickman, Managing Director at VSS, who also served as Chairman of Coretelligent. “With Coretelligent, we identified an opportunity to invest in and build a truly differentiated platform company with unique technology and high-performance capabilities that serve a wide range of professional services clients in attractive, fast-growing end markets,” he added.
As a minority investor in Coretelligent, VSS will continue to serve on the Company’s board.
VSS has an established history of investing in high growth, lower middle market IT services businesses, making structured capital investments as either a minority or majority investor. Earlier this year, VSS invested in Centroid, a provider of managed cloud services and enterprise workload consulting services across the Oracle, Amazon, IBM, Microsoft, and Google cloud platforms.
Drake Star Partners served as financial advisor and Ropes & Gray provided legal advice to Coretelligent and VSS in connection with the transaction.
VSS is a private investment firm that invests in the healthcare, information, business services and education industries. Headquartered in New York, VSS provides capital for growth financing, recapitalizations, strategic acquisitions, and buyouts to lower middle market companies and management teams with the goal of building companies organically as well as through a focused add-on acquisition program. VSS makes privately negotiated investments across the capital structure and invests in situations requiring control or non-control equity, mezzanine securities, and structured equity securities. VSS has over three decades of experience, made investments in 91 portfolio companies, with over 370 add-on acquisitions, and manages $4.0 billion in aggregate committed capital across 7 funds. For more information, please visit: www.vss.com.
Coretelligent is a leading provider of comprehensive managed IT, security, and unified cloud management services, enabling organizations to seamlessly power and successfully grow their businesses. Founded in 2006 and led by world-class experts, Coretelligent’s key White Glove services – Managed IT, Security and Compliance, Cloud Management and Backup and Disaster Recovery – are relied on by top-tier organizations in the financial services, life sciences, legal, and technology industries among others. The organization is recognized as leaders by the Boston Business Journal, CRN, Inc., MSPmentor, and the U.S. Chamber of Commerce. Coretelligent’s headquarters is in Westwood, Mass., with strategic offices located nationally in New York City, Philadelphia, Atlanta, Stamford, Scarborough, and the San Francisco Bay area, and expanded support locations in Dallas, Los Angeles, Philadelphia, Tampa, Washington, DC, and West Palm Beach. For more information, please visit www.coretelligent.com or follow us on Twitter, Facebook & LinkedIn.