RCP partnered with an independent sponsor specializing in tech enabled services to acquire NexusTek. The company was a single location provider of managed IT services for a variety of small and mid-sized businesses in the Denver area. The company was an ideal platform to take advantage of the highly fragmented Managed Service Provider (“MSP”) market and build a regional player with a multi-city presence. RCP invested $7.3 million in debt and equity in the initial transaction and supported the company’s growth with an additional $3.3 million of follow-on capital over the next three years.
Over the course of 40 months, NexusTek underwent transformational growth. The company hired a new executive management team, instituted a new sales model and implemented upgrades across its technology offerings. In addition, the company made three acquisitions that increased its service area from a single geography to coverage across the southwest United States. The company was ultimately acquired by a middle-market private equity firm as a platform investment.