New York – Funds managed by Kelso & Company (“Kelso”) have acquired a majority interest in Bridgenext (formerly Emtec Inc.), a leading provider of IT consulting and digital services to medium and large enterprises. Bridgenext’s broad technology services portfolio helps clients harness digital technology and process improvements to solve business problems, drive operational excellence, reduce risk, deliver innovation to their respective markets, and facilitate powerful customer experiences.
Bridgenext’s existing management team, led by CEO Sunil Misra, will continue to lead the business going forward and will remain significant investors in the company alongside Kelso.
“Bridgenext’s success has been made possible by our talented associates and our valued clients who trust Bridgenext with their most demanding digital engagements,” said Sunil Misra, CEO of Emtec. “We have developed a unique culture over our history, and we are excited to welcome a partner in Kelso who shares our passion for customer service, dedication to our associates, and commitment to investing for growth.”
In addition, John Castleman, formerly CEO of digital services firms Mobiquity and Alliance Global Services, will be joining Bridgenext’s Board of Directors as Chairman. Dinesh Desai, Emtec’s outgoing Chairman of the Board, will continue as a board member and remain a meaningful investor in the company.
“I am very proud of our amazing team and happy that our new partner, Kelso, shares our ethos of ‘client for life’. I firmly believe the Kelso partnership will help our associates scale new heights and be the best at what we do, while having fun doing it,” said Dinesh Desai.
“Bridgenext has an outstanding reputation for providing highly complex digital solutions and services,” said John Castleman. “We are focused on continuing to develop these differentiated capabilities while thoughtfully broadening our offering over time to address the diverse digital needs of our customers.”
“At Kelso, we look for opportunities to back high-quality managers with successful track records, and we are thrilled to partner with Sunil, John, and the Bridgenext leadership team,” said Hank Mannix, Managing Director at Kelso. “We are excited to support the company with additional resources and capital as it accelerates an already impressive growth trajectory in a highly attractive market,” added Alec Hufnagel, Managing Director at Kelso.
The transaction closed in August 2022. Financial terms of the transaction were not disclosed. Canaccord Genuity and Gibson, Dunn & Crutcher LLP advised Kelso in connection with the transaction. Guggenheim Securities LLC and Dechert LLP advised Bridgenext in connection with the transaction.
About Kelso
Kelso is one of the oldest and most established firms specializing in private equity investing. Since 1980, Kelso has invested approximately $19 billion of equity capital in 139 transactions. Kelso was founded by the inventor of the Employee Stock Ownership Plan (ESOP) and, as a result, the principles of partnership and alignment of interest serve as the foundation of the firm’s investment philosophy. Kelso benefits from a successful investment track record, deep sector expertise, a long-tenured and stable investing team, and a reputation as a preferred partner to management teams and corporate partners. The firm is based in New York, NY. For more information, please visit www.kelso.com.