Information on the Target

MGT Solutions, founded in 1975, is a Tampa-based technology-led managed services company focused on providing outsourced solutions for state, local, and educational entities. Established by a group of public sector employees, MGT has evolved to address various challenges faced by educational institutions, government organizations, school districts, and non-profits. The company has been instrumental in enhancing critical Information Technology (IT) infrastructure needs and improving student performance outcomes across the U.S. and abroad.

With over 13,000 solutions delivered to clients across all 50 U.S. states and 20 countries, MGT has serviced over 450 higher education institutions, including 30 Historically Black Colleges and Universities (HBCUs). Under a strong management team since 2020, MGT has successfully completed six acquisitions, expanded its employee base by 400%, and achieved a remarkable 118% increase in revenue over the last year.

Industry Overview in the Target’s Specific Country

The education sector in the United States is witnessing a significant transformation driven by advancing technologies. Many schools are struggling to keep pace with the rapid digitization of educational resources and infrastructure. As IT systems age and the demand for skilled IT professionals rises, educational institutions increasingly find themselves vulnerable to cybersecurity threats, leading to preventable increases in operational costs.

Furthermore, the reliance on outdated IT systems hampers educational effectiveness, making it imperative for schools to partner with managed services providers like MGT Solutions. In this context, MGT’s emphasis on comprehensive IT services—including network administration, cybersecurity, and cloud solutions—becomes crucial for schools and public sector entities looking to enhance their operational efficiency.

With a growing demand for finance and forecasting solutions, human capital management, cyber and network security, diversity and inclusion initiatives, and education improvement programs, MGT stands out as a trusted partner. The company’s impressive track record includes over 20,000 clients, with repeat business constituting 65% of project acquisitions, which underscores the quality and reliability of its service offerings.

The partnership between educational institutions and technology providers like MGT represents an under-penetrated market ripe for growth. The imperative for schools to adapt to new technologies and evolving educational methodologies creates significant opportunities that are yet to be fully explored.

The Rationale Behind the Deal

The Vistria Group’s strategic investment in MGT Solutions aligns perfectly with its mission of driving impact through partnerships that enhance growth, access to quality education, and improved student performance. Recognizing the necessity for robust IT infrastructure, the investment enables MGT to continue expanding its services while empowering educational entities to achieve their long-term goals more effectively.

Additionally, this partnership is expected to fuel MGT’s organic growth, allowing them to enhance their service offerings and broaden their client base, ultimately resulting in improved educational outcomes across diverse communities.

Information About the Investor

The Vistria Group is a private investment firm with a unique approach to combining financial returns with social impact. With a focus on essential industries such as healthcare, knowledge and learning solutions, and financial services, the firm is committed to creating value not only for its investors but also for the communities and individuals it serves. The Vistria Group leverages deep sector knowledge, operational expertise, and a diverse team to drive transformational growth within its portfolio companies.

With over $10 billion in assets under management (AUM), The Vistria Group has established a reputation for delivering attractive returns while simultaneously fostering positive outcomes for both its investments and the broader community.

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This investment appears to be strategically sound, as MGT Solutions operates within a crucial sector facing increasing demands. The rising challenges associated with outdated IT infrastructure and cybersecurity vulnerabilities in the education sector emphasize a significant market need for MGT’s services. The recurring revenue model of MGT, derived from a high percentage of repeat clients, indicates strong customer satisfaction and loyalty.

The partnership with The Vistria Group will likely enhance MGT’s capabilities, providing additional strategic and operational resources that are essential for scaling their solutions and implementing innovative educational practices. Furthermore, Vistria's commitment to social impact aligns with MGT’s mission, further solidifying this partnership.

Furthermore, as educational institutions increasingly prioritize technology to improve student outcomes, MGT is well-positioned to capitalize on this trend, making the investment appealing from both a financial and social impact perspective. Thus, the collaboration may serve as a catalyst for growth in the education technology sector, opening avenues for further development and improved educational standards nationwide.

In conclusion, the strategic partnership between The Vistria Group and MGT Solutions represents a positive investment opportunity, setting the stage for growth while addressing significant challenges in the educational sector.

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