LOS ANGELES, CA (April 30, 2009) – Platinum Equity announced today that it has acquired a majority stake in Canvas Systems LLC, a global supplier of used and refurbished enterprise-class IT equipment and services.
Platinum acquired the controlling interest from OHC, LLC, an Atlanta-based company that also owns global IT consulting group Corus360. OHC will maintain a minority interest in Canvas. Terms of the transaction were not disclosed.
“Canvas is a growing business with talented people and a compelling value proposition,” said Jacob Kotzubei, partner at Platinum who oversaw the investment. “Platinum has the operations, business development and financial resources to help the company grow and realize its full potential.”
“Joining forces with Platinum Equity will create new opportunities for our company and our customers,” said Mark Metz, Chief Executive Officer of Canvas Systems LLC. “As the economic dislocation continues pressuring companies to reduce spending and preserve capital, interest in high-quality refurbished IT solutions has increased. Canvas offers a full range of products and services to meet that growing demand.”
Canvas’ products include refurbished networking, storage, server and IP Telephony equipment from manufacturers such as IBM, HP, Sun, and Cisco. Canvas has over 3,500 customers in more than 65 countries, ranging from mid-sized businesses to Fortune 500 companies.
Mr. Kotzubei said the Canvas investment is a natural fit, given Platinum’s history in the IT equipment and services industry.
“We have had tremendous success creating value in this space,” explained Mr. Kotzubei. “We know the business and are excited by the potential at Canvas.”
In October 2004, Platinum acquired CompuCom, a provider of information technology solutions that help clients through the requisition, procurement, deployment, management and retirement lifecycle of their IT assets. Platinum grew the business through add-on acquisition and by providing the financial and hands-on operational resources necessary to help CompuCom mature into an industry leader. Platinum divested CompuCom in October 2007 and realized a substantial return on its investment.
Platinum’s M&A&O® approach to investing focuses on acquiring businesses that need operational support and can benefit from Platinum’s extensive in-house capabilities and expertise in transition, integration and operations. Through nearly 100 acquisitions in the complex operational turnaround market, the firm has a consistent record of value creation.
About Canvas Systems
Founded in 1998, Canvas Systems is a leading, global IT lifecycle management company that is based in Norcross, Georgia with offices in the United Kingdom and Netherlands. Canvas specializes in providing clients with fast and affordable green IT services, integration and financial solutions, third-party maintenance, disaster recovery and business continuity planning, and asset management programs. The company focuses on flexible and innovative green IT solutions that recycle, redeploy and reuse equipment, data center relocations and rentals, data erasure and more. Canvas has an extensive $100 million inventory, offers same day shipment to over 70 countries and saves significant money for clients ranging from Fortune 500 companies to small businesses. Canvas is part of OHC, LLC, an IT services holding company. For more information, call 1-877-CANVAS-9 or visit www.canvassystems.com.
About Platinum Equity
Platinum Equity (www.platinumequity.com) is a global M&A&O® firm specializing in the merger, acquisition and operation of companies that provide services and solutions to customers in a broad range of business markets, including information technology, telecommunications, logistics, metals services, manufacturing and distribution. Since its founding in 1995 by Tom Gores, Platinum Equity has completed nearly 100 acquisitions with more than $27.5 billion in aggregate annual revenue at the time of acquisition.