Convergint partners with Ares Management

Dan Moceri talks with SSN about what the financial deal means moving forward
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Wednesday, February 7, 2018

SCHAUMBURG, Ill.—Convergint Technologies recently announced its new financial partnership with a fund managed by the Private Equity Group of Ares Management, L.P., a global alternative asset manager with approximately $106 billion of assets under management. Convergint had been with Denver-based firm KRG Capital Partners since 2012, experiencing tremendous growth during that time.

Dan Moceri, executive chairman and co-founder of Convergint Technologies, said this new partnership will help the company to continue its growth through strong operational and acquisition programs and expanded professional services.

“KRG has been a phenomenal partner for us over the last five and half years and you can see the results of partnering with them and the growth we have had and geographic expansion has worked out extremely well,” Moceri explained. “But it was time to move on and look for the next financial partner, which is what we have done over the last six months or so. We have been very fortunate to find someone in Ares, which is the next size up from KRG but similar to KRG in that they really understand the Convergint culture, which is very important.”

He continued, “Not only do they believe in the culture and the company, they strongly believe in the existing leadership team, and our proven and successful strategy for growth, which we will continue moving forward. And I am sure working with Ares we will come up with opportunities and areas for further expansion, geographically as well as market- and solution-wise for our customers.”

Ken Lochiatto, CEO of Convergint Technologies, added, "Being our customer's best service provider is a lofty goal, and as such, we are continually looking to enhance our ability to meet our customers' need. The partnership with Ares Management allows us to maintain our growth strategy to further deepen and expand the portfolio of services we offer to customers."

Moceri pointed out that Convergint has always had a financial partner—“This deal just continues the string of financial partners that we have had,” he said. “We only entertain financial partners because we want to continue to build on Convergint’s successful strategy and the incredible leadership team that we have had. Bringing in another financial partner can help take us to that next stage of Convergint’s evolution. If you look at our track record and our history, every time we have brought on a new financial partner, we just continue to accelerate the growth.”

Speaking of growth, Moceri said that Convergint is on pace to hit approximately $1 billion in revenue this year. “We will do that both organically and through acquisition as we have done the last four to five years,” said Moceri. “We have a nice sales funnel and backlog of existing opportunities and a nice funnel of potential acquisitions moving forward as well. And we will continue to do what we have been doing from an acquisition perspective.”

Moceri is also excited about potential growth beyond North America. “One opportunity or area that Ares brings is they have a global footprint, so they have strong operations not only in North America but in Asia and Europe as well, so as we continue to build out our global footprint they are going to be able to help us to do that.”