New York-based investment manager Apollo Global Management, LLC (APO) revealed that funds affiliated with Apollo have inked a deal to buy Presidio Holdings, Inc from affiliates of American Securities LLC. The terms of the deal were not disclosed.

A major private equity firm in the U.S., American Securities invests in North American companies that have annual revenues usually in the range of $500 million–2 billion. Currently, American Securities and its affiliates have around $10 billion under management.

In 2011, American Securities bought Presidio and since then expanded Presidio through a number of acquisitions of smaller peer companies such as INX Inc and BlueWater Communications Group LLC.

With a client base of around 6000 clients across the U.S., Presidio is engaged in providing IT infrastructure solutions. Its services comprise six core technology spaces – networking, data centers, mobility, security, collaboration and contact center. The company supports clients in procurement, implementation and management of IT infrastructures.

Apollo believes that Presidio’s talented management team and its skilled professionals would be beneficial going forward. Apollo will support the “ongoing growth initiatives” of Presidio.

Apollo’s financial advisor was LionTree Advisors and its legal counsel was Wachtell, Lipton, Rosen & Katz. Barclays Capital, an arm of Barclays PLC (BCS) and Credit Suisse Securities, a unit of Credit Suisse Group AG (CS) acted as financial advisors to Presidio while its legal counsel was Weil Gotshal & Manges.

As an investment management firm, Apollo has grown through meaningful acquisitions, strategic alliances and divestures. The company’s interest lies in varied spaces including chemicals, commodities, mining, agriculture, technology, financial services and manufacturing. We look forward to the company’s greater involvement in such attractive deals that augur well for its growth.

However, we remain concerned about the adverse effects of the present capital market volatility and stringent regulatory landscape that could weigh on the company’s financial performance in the near term.

Apollo Global currently carries a Zacks Rank #5 (Strong Sell). KKR & Co. L.P. (KKR) is a better-ranked company in this space with a Zacks Rank #1 (Strong Buy).

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