AUSTIN, TEXAS January 9, 2023
CMIT Solutions LLC (“CMIT”), a leading IT Managed Service Provider (MSP) franchisor, today announced the transition of ownership from Craftsman Capital to HKW, a middle-market private equity firm focused on growth companies in the US and Canada. The move is part of CMIT’s aggressive strategy to double systemwide revenue to $200 million by 2028.
Based in Indianapolis, Indiana, HKW invests in profitable middle-market companies in the Technology sector. As a rapidly growing IT and cybersecurity organization, CMIT is strongly aligned with HKW’s investment focus. CMIT’s systemwide revenue surpassed $100 million in 2022, more than a year ahead of its projected timeline, through a focus on enhanced marketing, sales, and operational efficiencies.
“HKW shares our goal of accelerating our company’s growth while creating more value for our clients,” said Roger Lewis, CEO of CMIT. “Their expertise and support will be instrumental as we achieve the next phase of our maturity through new initiatives in marketing, sales, and operations, including adding centralized fulfillment capabilities.”
Also announced today is HKW’s acquisition of HTW, Inc. (“HTW”), an MSP which will serve as the foundation of a corporate affiliate, which will establish a nationwide fulfillment center. The program leverages the acquisition of one of CMIT’s top-performing franchisees with existing capacity to serve multi-location accounts. The corporate affiliate will strengthen CMIT’s ability to support larger enterprise customers. A central team of IT and security professionals will provide clients with solutions for larger and more complex projects. Additionally, these resources shared among franchise locations will enable the company to better support clients who need specialized expertise.
“The MSP and cybersecurity industry continues to expand as businesses seek solutions to address increasing cyber threats and IT complexity,” Daniel Kim, Partner at HKW, said. “We recognize the tremendous opportunity in front of CMIT. We’re excited to be part of helping the company build its scale to meet the growing demand for technology and security services in the coming years.”
The financial terms of the transaction were not disclosed.
About CMIT Solutions
CMIT Solutions LLC (CMIT) is a leading Managed Services Provider (MSP) franchisor delivering information technology (IT) and cybersecurity solutions to businesses. Through a large network of enterprise-class technology resources, the company supports businesses anywhere in the United States and Canada, and its locally owned franchise model enables CMIT to serve customers through high-trust, direct relationships. CMIT offers a wide variety of services and products, including IT management and maintenance, cybersecurity monitoring, help desk support, data backup and recovery, and more. The organization has ranked in Entrepreneur magazine’s Franchise 500® list for eight consecutive years and is designated as a World Class Franchise by the Franchise Research Institute. For more information on CMIT, please visit cmitsolutions.com.
HKW is a middle-market private equity firm investing in companies with talented management teams in the US and Canada. HKW targets companies in the Technology, Health & Wellness, and Business Services sectors. Since 1982, HKW has sponsored 69 platform transactions of middle-market companies throughout North America and 75 add-on acquisitions. For more information on HKW, please visit hkwinc.com.