Information on the Target

Integris is a managed IT service provider dedicated to empowering small and medium-sized businesses through technology solutions. Headquartered in Cranbury, New Jersey, the company has successfully established a national presence with a network of local service offices across the East Coast, Midwest, and South. Integris specializes in delivering a comprehensive suite of outsourced IT, cloud, and cybersecurity services tailored to the unique needs of its clients.

Founded in 2021, Integris has quickly ascended to prominence within the industry, consistently appearing on the Inc. 5000 list of fastest-growing companies. By fostering gold-level partnerships with leading technology vendors, Integris ensures that its offerings are responsive, secure, and regulation-ready, effectively bridging the gap between local service and national capabilities.

Industry Overview in the United States

The IT managed services provider (MSP) sector in the United States is experiencing rapid growth, fueled by increasing demand for outsourced IT services from small and medium businesses across various industries. As companies aim to enhance their operational efficiency and focus on core business functions, the need for expertise in IT management, cybersecurity, and cloud services has never been more critical.

Additionally, the COVID-19 pandemic accelerated the adoption of digital solutions, compelling many organizations to rethink their IT strategies. This shift has led to a surge in reliance on managed service providers who can deliver robust IT support, maintain cybersecurity defenses, and manage cloud infrastructure. The MSP sector is projected to expand further as businesses continue to prioritize digital transformation.

The robust growth trajectory in the MSP market is attributed to several factors, including increasing cybersecurity threats, the shift to remote work, and a growing emphasis on compliance and regulatory standards. As small and medium-sized enterprises strive to stay competitive in this evolving landscape, their investment in managed services is expected to soar, creating lucrative opportunities for companies like Integris.

With technology continuing to evolve at a rapid pace, firms must adapt and innovate. The MSP sector's resilience and adaptability signify a promising future, particularly for providers with the infrastructure and expertise to cater to diverse client needs in various industries.

The Rationale Behind the Deal

The acquisition of Integris by OMERS Private Equity signifies a strategic entry into a promising sector poised for continued expansion. The partnership allows OMERS to capitalize on Integris's established portfolio of managed services while enabling the company to enhance its growth trajectory. OMERS aims to leverage its extensive experience in scaling companies through organic growth and strategic acquisitions to further develop Integris's footprint across the U.S.

This investment will bolster Integris's capabilities, facilitating a stronger national presence and enhancing service delivery to a broader customer base. OMERS's support will allow Integris to innovate and expand its offerings, solidifying its position as an industry leader.

Information About the Investor

OMERS Private Equity is a global investment manager representing one of Canada’s largest defined benefit pension plans, with a net asset value of C$128.6 billion as of December 31, 2023. The firm focuses on leveraging its evergreen capital base to invest in various sectors, including Industrials, Healthcare, Business Services, and Technology. OMERS fosters partnerships with strong management teams to transform solid businesses into market leaders worldwide.

With a keen focus on long-term value creation, OMERS Private Equity has a history of investing in companies that show immense growth potential. The firm is dedicated to supporting its portfolio companies' success through strategic guidance and operational expertise, making it an ideal partner for Integris as it embarks on its next chapter of growth.

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The acquisition of Integris by OMERS Private Equity presents an intriguing investment opportunity that aligns well with current market trends in the MSP sector. Given the increasing demand for outsourced IT services, this deal could prove to be beneficial for both parties. OMERS's experience and resources will facilitate Integris's expansion and enhance its service offerings, positioning the company favorably in a rapidly growing market.

Moreover, the fact that Integris has a strong leadership team in place assures continuity and effective execution of growth strategies. With a cultural alignment between the two organizations, the partnership is likely to support a seamless integration process, further enhancing operational efficiencies.

However, potential challenges in the execution of this growth strategy must be considered. The MSP industry is highly competitive, with numerous players vying for market share. Integris will need to continuously innovate and adapt to changing customer expectations and technological advancements to maintain its competitive edge.

In conclusion, this acquisition has the potential to be a successful investment if managed effectively, leveraging OMERS's resources and Integris's established market presence. The evolving landscape of the MSP market suggests that this partnership could yield significant returns in the long run.

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