MBI Solutions Acquired by ESW Capital
7 Mile Advisors Acted as the Exclusive Sell-side Advisor to MBI Solutions, LLC in Their Sale to ESW Holdings, Inc. a Portfolio Company of ESW Capital, LLC.
Experts in enterprise software transactions adds transformative big data, managed services, and capacity planning capabilities to its portfolio.
CHARLOTTE, NC – MBI Solutions, LLC, an expert in infrastructure optimization, technology selection, big data implementation, and reliable managed services solutions, has been acquired by ESW Holdings, Inc., an Austin-based conglomerate of leading enterprise software platforms. Terms of the transaction were not disclosed. ESW Holdings, Inc. is owned by ESW Capital, LLC, a respected private equity group with a focus on investing in and growing enterprise software businesses by taking advantage of a unique operating platform. The acquisition of MBI Solutions is ESW’s tenth acquisition of 2018, and twenty-third transaction in the past 18 months.
7 Mile Advisors, a leading middle market investment bank based in Charlotte, NC, acted as the exclusive sell-side advisor to MBI Solutions throughout the transaction. This transaction marks 7MA’s third transaction in the Managed Services space in the past 12 months.
Founded in 2010, with its headquarters in Mount Laurel, NJ, MBI Solutions has developed a reputation in various end-markets, particularly managed healthcare and healthcare insurance, as an expert in enterprise infrastructure strategy, performance management, big data solution implementations and 24/7 infrastructure managed services. The company’s proven methodologies and expert consultants deliver customized solutions based on multi-faceted infrastructure and application-layer demands. As a virtual business model, MBI is able to employ and retain industry leading expertise and offer the flexibility of on-site or remote delivery to its customers.
Having acquired over 70 enterprise software platforms since inception in 1988, ESW Holdings and ESW Capital have a proven ability to deliver powerful enterprise solutions that generate long-term recurring revenue. Given this alignment with MBI’s operating model, and enterprise businesses’ regular need for infrastructure management, big data, and managed services, the acquisition of MBI allows ESW to bring a broader, more compelling offering to its 1,000+ customers.
When reflecting on his experience with 7MA, Rick Cerwonka, CEO of MBI Solutions, LLC said, “Working with the team from 7 Mile Advisors was outstanding. From the very beginning when we first met them we were impressed. Their process in preparing for the sale is exceptional. Their information sharing and communication was excellent, and with regards to closing support, they were always there to assist and help out in every way. I would chose them again and again.“
As M&A experts within the tech-enabled business services ecosystem, 7 Mile Advisors has assisted clients in various sub-sectors achieve their growth and liquidity goals through the execution of over 125 successful transactions since 2008. With 18 full-time employees, 7 Mile Advisors’ industry expertise allows for deep insight and knowledge of M&A activity in the ecosystems in which it plays, much of which is described in sector-specific research reports. Additionally, 7 Mile Advisors regularly publishes blogs with market insights including the most recent post titled, “AI, and the Impact On Managed Service Providers”. In the past 12 months, 7 Mile Advisors has closed three successful transactions in the Managed Services space: In addition to acting as the sell-side advisor to MBI Solutions, they also acted as the exclusive buy-side advisor to Uniguest in their acquisition of U.K.-based Onelan, and the exclusive sell-side advisor to Netserve365 in their acquisition by Magna5, a portfolio company of NewSpring Capital.
In response to the completed transaction, Tim Frye, Director at 7 Mile Advisors said, “We continue to see exciting transactions take place in the Managed Services ecosystem. We’re also finding that, as companies with proven Managed Services practices expand with complementary capabilities such as infrastructure strategy consulting, big data implementation and support, analytics, etc., the market for these types of businesses continues to gain momentum. Buyers continue to compete for businesses with deep managed services expertise, but for those that have maintained similar expertise while developing a broader set of capabilities, acquirors are increasingly willing to share the strategic benefit with sellers through exciting valuations.”
About 7 Mile Advisors
7 Mile Advisors provides Investment Banking & Advisory Services to the Business Services and Technology Industries globally. 7 Mile Advisors advises on M&A and private capital transactions, and provides market assessments and benchmarking. As a close-knit team with a long history together and a laser focus on our target markets, 7 Mile Advisors helps its clients sell companies, raise capital, grow through acquisitions, and evaluate new markets. All securities transactions are executed by 7M Securities, LLC, member FINRA / SIPC. For more information, including research on the M&A markets, visit www.7mileadvisors.com.
About MBI Solutions, LLC
MBI Solutions provides Managed Services for Remote Administration, Capacity and Performance Management, in addition to Supplemental Staffing. All of their offerings are structured to meet the individual needs for each customer. By combining highly flexible and customizable offerings with years of in-depth experience, MBI provides comprehensive solutions for:
- database, middleware, and OS performance monitoring
- reporting and analysis,
- proactive capacity planning
- performance tuning improvements
These solutions are available via the traditional project-based outsourcing delivery model, or through continuous co-sourcing where a dedicated team becomes an extension of your employee base and is aligned to your strategic direction.
MBI also provides targeted service offerings that are just right for very specific customer needs. Services including architecting and managing the monitoring infrastructure, full application performance tuning, or continuous administrative services may be layered one atop another. Customers may elect to start with a focused service initially, with the option to easily expand the service scope at a later time depending on the needs of the enterprise. www.mbisolutions.net
Based in Austin, Texas, the ESW Capital group specifically focuses on buying, strengthening, then growing mature business software companies. By taking advantage of its unique operating platform, ESW revitalizes its acquisitions for sustainable success while making customer satisfaction a top priority. ESW and its affiliated companies have been in the enterprise software space since 1988. www.eswcapital.com