Case Study

Convergint Technologies

Convergint Technologies

Convergint Technologies is a security and safety technology integration company that prides itself on its original and dynamic corporate culture. From the company’s manifest promotion of work-life balance, to its annual celebration of “Convergint Social Responsibility Day” (in which work is suspended for a full business day to make time for local community service) Convergint’s commitment to cultural excellence has been integral to its business success.

The company is North America’s largest independent provider of electronic security, fire alarm and life safety (FLS), building automation, and healthcare technologies integration. Revenues are stable and predictable due to the company’s maintenance of thousands of service agreements with a near-perfect renewal rate. The vast majority of annual systems revenue is generated by repeat customers, many of them blue chip Fortune 500 companies.

In August 2012, KRG Capital Partners acquired Convergint, partnering with the company’s management to pursue a roll-up strategy. PennantPark’s investment in the initial transaction included $24.5mm in Senior Subordinated Notes (11% Cash / 1% PIK) and $2.5mm of equity.

Outcome:

PennantPark Key Advantages: