Key Takeaways
- One Equity Partners acquires Yorktel, an audio visual / IT services firm specializing in managed services and collaboration solutions.
- Yorktel supports blue-chip enterprises and government agencies with managed IT services and AI-based monitoring solutions.
- OEP sees opportunities for Yorktel to grow organically, make strategic acquisitions, and expand its offerings.
- Yorktel is well-positioned to meet demand for productivity, automation, and collaboration technologies in connected environments.
Topic Summary
One Equity Partners (OEP) has successfully completed the acquisition of York Telecom Corporation (Yorktel), a prominent IT services firm specializing in managed services and enterprise audio visual / collaboration solutions. This strategic move positions OEP to capitalize on the growing demand for productivity, automation, and collaboration technologies in increasingly connected business environments.
Yorktel, an audio visual firm established in 1985 and headquartered in Wall, N.J., has built a reputation as a Next-Gen Global Systems Integrator and leading Managed Services Provider, supporting a diverse clientele of blue-chip enterprises and government agencies.
With a global workforce exceeding 500 employees and a scalable operating footprint spanning the Americas, Europe, and Asia, Yorktel is well-equipped to deliver a comprehensive suite of audio visual and IT services. These include managed IT services, collaboration system and audio visual integration, and advanced AI-based monitoring solutions, all designed to enhance the hybrid work experience.
OEP’s acquisition of Yorktel is driven by the recognition of significant growth opportunities in the IT services sector. Carlo Padovano of OEP highlighted the potential for Yorktel to expand organically, pursue strategic acquisitions, and broaden its service offerings. This sentiment is echoed by Ken Scaturro, CEO of Yorktel, who expressed enthusiasm about leveraging OEP’s expertise in the IT services sector to further enhance Yorktel’s offerings, ultimately improving their customers’ digital workplace experiences.
The partnership between OEP and Yorktel comes at a time when investments in productivity, automation, and collaboration technologies are top priorities for business leaders. Otavio Birman, Vice President at One Equity Partners, emphasized Yorktel’s strong position to meet this demand by delivering solutions that optimize client operations in an increasingly interconnected business landscape.
This acquisition aligns with OEP’s focus on the industrial, healthcare, and technology sectors in North America and Europe. As a middle market private equity firm with a proven track record of generating long-term value, OEP brings a differentiated investment process and a broad, senior team to support Yorktel’s growth trajectory.
Background Information: Click Here to ViewOur Thoughts and Commentary
Technically and financially speaking, OEP has acquired Yorktel. But this is not the sort of transaction that most people think of when they hear that company A has acquired company B.For example, in 2018, Plantronics completed its acquisition of Polycom, a leading video conferencing and audio solutions company. That was a relatively standard horizontal acquisition where two companies in the same industry joined forces, resulting in a company with a larger headcount and an expanded set of offerings. This was the story when Cisco acquired Tandberg in 2010, Facebook acquired WhatsApp in 2014, and Kramer acquired ZeeVee (see our write-up) in 2024.
OEP’s acquisition of Yorktel was a private equity acquisition in which OEP purchased Yorktel as a strategic investment. OEP is not an operator company, and OEP is not expected to take over Yorktel’s day to day operations. According to OEP’s website, the company has invested more than $12.5B in 110+ companies to date.
So, what does all this mean? Moving forward, Yorktel will continue to do business as usual, with one notable exception — Yorktel will now have access to additional resources, including capital for investments and managerial talent to help it define and execute a strategic growth plan.
Yes. This deal is about money. It’s about giving Yorktel access to the funding it needs to invest in people, systems, technology, and footprint.
Stated differently, this deal makes sense (and cents) because it gives Yorktel the ability to:
- Expand its existing offerings to earn more wallet-share from its existing customers
- Hire additional sales people to win new logos
- Accelerate its innovation efforts
- Acquire other integration or managed services firms
- Invest in tangential markets
Finally, why did OEP choose Yorktel? There are thousands of audio visual integrators and IT service providers in the US alone. What made Yorktel stand out? My (educated) guess is that OEP was attracted to Yorktel’s longstanding success as a managed service provider, and its proven ability to generate recurring revenue (the holy grail for many PE / VC folks).
Listen carefully and you might just hear the sound of champagne corks popping in central New Jersey.