Alternative investment firm H.I.G. Capital has entered into a definitive agreement to sell Trace3 to affiliates of private equity firm American Securities.

Founded in 2001, Trace3 is a provider of IT solutions and services to over 2,500 commercial and enterprise clients across the US within the cloud technologies, data centre designs, security strategies, and business intelligence sphere.

The company is headquartered in Irvine, CA with offices across the United States, and has produced revenues of US$1.4 billion in recent years.

H.I.G., which has $45 billion of equity capital under management, first invested in the business in 2017. American Securities and its affiliates have more than $25 billion under management

The transaction remains subject to customary closing conditions and the financial terms of the transactions are not being disclosed.

Rich Fennessy, Chief Executive Officer of Trace3, said: “H.I.G. was an invaluable partner who enabled us to maintain the culture that makes Trace3 special, while providing strategic vision in helping us build one of the largest solutions providers in the US.”

Also commenting, Kevin Van Culin, Managing Director at H.I.G. Capital, added: “We are extremely proud to have supported Trace3’s differentiated growth during our partnership with the team over the past four years.

“We feel fortunate to have played a role in continuing Trace3’s legacy as a best of breed, emerging-tech focused solutions provider.”

Guggenheim Securities LLC served as the exclusive financial advisor to Trace3; Akerman LLP and Latham & Watkins LLP served as legal counsel to Trace3 and H.I.G. for this transaction. Kirkland & Ellis LLP represented American Securities.