The Bottom Line: NewSpring Announces Exit of MicroAge in $220.5M Transaction

NewSpring ("the Firm"), a family of private equity strategies, today announced that NewSpring Mezzanine, the Firm’s dedicated private credit strategy, has agreed to exit its investment in MicroAge.

Here are three things you need to know about NewSpring’s exit:

ScanSource has agreed to acquire MicroAge in a $220.5M transaction

ScanSource is a leading technology distributor that connects businesses with cutting-edge technology solutions from the world’s leading suppliers. With ScanSource’s greater reach, resources, and channel expertise, MicroAge is now well positioned to scale its services-led model in high-growth markets.

Under NewSpring’s investment, MicroAge grew into a more robust service provider of business technology solutions through both organic and M&A means

Over the course of NewSpring’s investment, MicroAge significantly expanded its offering beyond hardware to include a full suite of technology software and services for mid-to-large-sized enterprise businesses. As a result, existing customers could purchase multiple solutions from MicroAge as their single provider, creating significant cross-selling and upselling opportunities.

NewSpring helped MicroAge further penetrate its client base and thus enhance EBITDA and EBITDA margin

Since NewSpring’s investment, MicroAge significantly grew its EBITDA  across more than 2,400 active clients and investing in the skills and capabilities that strengthened its position as the trusted solutions provider to its clients.

“When we first invested in MicroAge, they possessed a sizable, well-established sales team with a robust track record selling IT hardware. Alongside experienced sponsor Alerion Capital Group,  we helped the company expand into software and technology services and adding value through strategic acquisitions, we were able to help elevate the company into a full-service IT solutions integrator supporting significant businesses across a variety of end markets.” – Brian Kelly, NewSpring Vice President