ATSG and Evolve IP Join Forces with Morgan Stanley Backing
Deal News | Oct 31, 2024 | Morgan Stanley (MSCP)
Investment funds managed by Morgan Stanley Private Equity Secondaries, through a vehicle managed by RunTide Capital, have completed an equity financing deal, facilitating the merger of two tech companies, ATSG and Evolve IP. ATSG, a global tech provider specializing in cloud IT managed services and cybersecurity, has joined forces with Evolve IP, known for its desktop-as-a-service and unified communications solutions. The merger positions the combined entity to serve 1,700 customers worldwide, encompassing 950,000 end-users, thereby bolstering ATSG's service capabilities. Morgan Stanley's previous investment in ATSG through a continuation fund transaction in January 2021 was cited, emphasizing ongoing support and strategic partnership to expand IT services and reach more clients globally. RunTide Capital and Morgan Stanley both expressed enthusiasm for the deal, expecting the merger to create a scalable platform that enhances technological capabilities and growth. The strategic alignment of portfolios and technological capabilities aims to enhance market strategies for the combined firm.
Sectors
- Private Equity
- Technology
- Telecommunications
Geography
- United States – Morgan Stanley and RunTide Capital are based in the U.S., and ATSG is headquartered in Manhattan, New York.
Industry
- Private Equity – The article involves investment and financing activities conducted by Morgan Stanley Private Equity Secondaries, a major player in the private equity sector.
- Technology – Both ATSG and Evolve IP operate within the technology sector, offering IT managed services, cloud solutions, and cybersecurity services.
- Telecommunications – Evolve IP provides unified communications and contact center solutions, which fall under the telecommunications industry.
Financials
- 5.4 billion – Morgan Stanley Private Equity Secondaries has deployed $5.4 billion in 54 GP-led secondaries transactions as of June 30, 2024.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Morgan Stanley Private Equity Secondaries | Investor | Company | A segment of Morgan Stanley Investment Management, focusing on secondary private equity investments. |
| RunTide Capital | Investor | Company | A private equity firm focused on building tech-enabled growth companies. |
| ATSG | Target Company | Company | A global provider of IT managed services and cybersecurity solutions. |
| Evolve IP | Target Company | Company | A global leader in desktop-as-a-service, unified communications, and contact center solutions. |
| Dan Wieder | Managing Director | Person | Managing Director at Morgan Stanley Private Equity Secondaries. |
| Rob Manning | Partner | Person | Partner at RunTide Capital. |