Tim Britt, the CEO of IT services and consulting firm Synoptek LLC in Irvine, says he’s looking forward to even greater growth under the company’s new majority investor, private equity firm Quad-C of Virginia.
“We’ll be investing more in marketing and sales. That will contribute to additional growth,” Britt told the Business Journal on Sept. 27.
He added: “We are looking at some M&A opportunities as well,” while systems investment is also expected to be on tap with the recapitalization.
The firm announced in May it had purchased Atlanta customer service agency Macquarium for an undisclosed price, in one of its more strategic acquisitions to date.
Adding Hundreds
Synoptek currently has more than 1,000 employees and Britt expects that number to grow to around 1,300 by the end of next year.
He will be staying on as CEO along with the rest of the management team.
“We’ve built a great leadership team and we’re ready to drive it to the next level,” according to Britt.
Financial details of the investments by Charlotteville-based Quad-C, whose investments are focused on middle market companies, were not released.
Synoptek had already been experiencing “significant growth” under its previous majority investor Sverica Capital Management, which invested in 2015. That includes five strategic acquisitions that expanded the company’s geographic and services reach.
Boston-based Sverica will now have a minority stakeholder role and will continue to be involved with the company.
Larger Fund
“Quad-C is a substantially larger fund and has more dry powder, if you will,” Britt said. “We just have a broader source of capital and a bigger partner.”
One thing is clear: Synoptek will be staying in Irvine, where about 60 employees are located. The company has 12 offices around the globe, including Chicago and Denver, as well as Canada and India.
Britt says the company’s projects and digital transformation work makes up about 40% to 45% of Synoptek’s business, while “managed services” accounts for about 55% to 60%.
The firm had revenue of about $115 million in 2021, on target with company expectations, Britt said in May. He said then he expected Synoptek revenue to be close to $130 million this year with 14% to 15% growth in 2023.
He is looking forward to working with Quad-C, which over three decades has invested more than $4 billion of capital in 80 platform companies.
“This investment will enable us to grow and extend our service offerings for clients as well as create new and strategic career opportunities for our team. The partnership is a strong fit for us both,” Britt said.
Founded 2001
Founded in 2001, Synoptek calls itself a “full-service business technology solutions provider.” It partners with customers to “envision, transform and evolve their businesses” to achieve better results using technology.
The company’s global technology services implementation and management platform enables customers to accelerate their use of technology and reduce technology operating expenses.
Synoptek has more than 1,200 clients, according to the company’s website. Synoptek offers a combination of IT outsourcing, business systems, analytics, cloud computing and cybersecurity services.
