Backed by Private Equity, Combined Organization Delivers Differentiated SaaS Management Platform with Integrated Work-from-Anywhere Solutions to Accelerate Secure Cloud Transformation
NWN Corporation, the leading Cloud Communications Service Provider (CCSP) delivering solutions for today’s work-from-anywhere environment, has closed the acquisition of Exeter, RI-based Carousel Industries. Backed by New State Capital Partners, the combined entity will deliver an estimated $1 billion run-rate revenue in 2021. Financial details of the transaction were not disclosed.
The acquisition comes on the heels of a record 24 months for NWN, including significant adoption of its solution portfolio and 20% acceleration in revenue growth from the year prior. With the acquisition of Carousel, the company is doubling down on its solutions for cloud communications, engagement, networking, devices, security, and infrastructure built for the work-from-anywhere environment.
"Our intent is to build a national powerhouse brand that will transform expectations for today’s work-from-anywhere environment," said Jim Sullivan, CEO of NWN. "Business communications are essential to productivity and collaboration. There is a tremendous need for service providers to help deliver better employee and customer experiences across commercial and public sector markets. The combined entity will give us unparalleled reach and resources to meet customer demand."
Carousel Industries serves more than 5,000 customers nationwide. Founded in 1992, the company is widely recognized in the industry as a top managed service provider and employs more than 1,000 people across the country. Like NWN, the company has deep technology expertise across unified communications and collaboration, secure infrastructure, data centers, networking, and cloud solutions.
"This acquisition represents an incredible opportunity for Carousel employees, customers, and partners alike," said Jeff Gardner, founder and CEO of Carousel Industries. "We share an innate passion for propelling our customers’ journey to the cloud – driving adoption with speed and scale, providing ROI, and enriching their transformation journey. As much as 70% of our customer base is demanding integrated cloud services now, and this partnership will advance our ability to meet and exceed their needs from day one."
"This chapter represents such an exciting moment in our journey; a meeting of two organizations that have a rich history of valuing clients and putting them first," said Jim Marsh, CRO of Carousel Industries. "Our success is a result of operating from a ‘customer success obsessed’ vantage point, and now we will continue to propel our clients forward with the same mindset, but with greater scale and deeper resources. This acquisition is a great testament to years of diligent work and thoughtful execution from the Carousel family. We are very proud to enter this next chapter together."
According to Gartner, global spending for IT services, communications services, and devices will reach more than 3.3 trillion in 2021. The need for cloud communications and infrastructure services grew significantly over the past year as COVID-19 forced organizations of all types and sizes—from public sector agencies and educational institutions to businesses across industries— to work in today’s dynamic environment. As this new workstyle becomes the norm, organizational leaders face a greater urgency to deliver more agile, secure, cost-effective, and collaborative digital communications experiences for their employees, customers, and anyone else within their supply chains and ecosystems. To meet this need and support this new workstyle, organizations are increasingly engaging with CCSPs to integrate and manage all best-in-breed technologies to maintain connectivity and enhance the employee and customer experience securely.
"We are pleased to welcome the Carousel team into the NWN platform, which represents a transformational opportunity to help customers adopt critical IT investments faster," said David Blechman, founder and senior principal of New State Capital Partners. "Our approach in backing NWN’s leadership team, as they pursued an aggressive organic and inorganic growth strategy, was to provide the full extent of New State’s deal analysis, financial and strategic guidance as they build a new national cloud communications leader. Congratulations again to the team."
NWN Corporation is a leading Cloud Communications Service Provider (CCSP) focused on transforming the customer and workspace experience for commercial, enterprise and public sector organizations. The company offers solutions-as-a-service that help organizations work from anywhere securely. With over 1,400 customers throughout the U.S., NWN provides integrated cloud communications, security, contact center, managed devices, connectivity, and advanced technology solutions. To learn more about NWN's solutions and offerings, visit www.nwnit.com.
About Carousel Industries
The Carousel team has been committed to the art of customer success for its more than 5,000 highly satisfied customers since 1992. The company has been recognized by multiple publications and industry consortiums as a top technology integrator and managed services and cloud solution provider—including the Inc. 500/5000, Healthcare Informatics 100, and CRN MSP Elite 150. Headquartered in Exeter, RI, the company has offices across the United States and internationally—with three Network Operations Centers.
About New State Capital Partners
New State Capital Partners LLC is an entrepreneurial-minded private equity firm that strives to be nimble, decisive and cooperative. New State prides itself on a long-term outlook, approaching each potential investment as an opportunity to create lasting and valuable relationships with company founders and especially independent sponsors. New State has the ability to invest up to $100 million in equity per transaction. New State seeks to invest in market-leading companies with $8 million to $35 million of EBITDA in the areas of business services, industrials, and consumer. New State and its affiliates have invested in 27 companies to date. For more information visit www.newstatecp.com.
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