OC Business Journal

IT: Expect further growth for Irvine’s Trace3 under new ownership, execs say

Exec Chairman Beecher: ‘Strong View of the Horizon’

The leadership team of IT services provider and consulting firm Trace3, one of Orange County’s largest privately held tech companies, says the company’s new owner will provide “a strong view of the horizon over the next five years.”

Trace3 was sold to private equity firm American Securities LLC of New York by H.I.G. Capital of Miami, in a deal that was finalized on Oct. 15.

“What this buys us as a company is a really strong view of the horizon over the next five years with a new, fresh partner that’s really sharp and got deep resources,” Executive Chairman Tyler Beecher told the Business Journal.

He said the Irvine-based company is always focused on organic growth though “there will also be some opportunity, I think, for some M&A.”

Chief Marketing Officer Sandy Salty said that with American Securities “there’s a lot of synergy. They are strong believers in hiring the best talent.”

“We’re pretty bullish on the future of Trace3 and what we’re capable of,” she said in a joint interview with Beecher.

Salty added: “Over the past 20 years, Trace3’s revenue has grown from $100 million to $1.5 billion and we plan on maintaining that kind of success trajectory.”

Best Talent

“There are a lot of shared values in combination with the fact that they just have a lot of deep experience in our space,” she said. “Their ability to offer us insights that are valuable is really high.”

Trace3 boasts of expertise in cloud, security, data intelligence, managed services, data center infrastructure, and emerging technology. Trace3 employs more than 500 engineers with deep domain expertise across consulting, IT design and architecture, implementation, and related support disciplines.

With roots in the data center, Trace3 offers a broad mix of end-toend technology services and solutions. These also include artificial intelligence and data insights as well as cloud computing and security consulting.

$25 Billion

American Securities is a U.S. private equity firm that invests in market-leading North American companies with annual revenue generally ranging from $200 million to $2 billion and/or $50 million to $250 million of EBITDA. American Securities and its affiliates have more than $25 billion under management.

“We have a very common language with these guys right out of the gate,” Beecher said of Trace3’s new owners. “They’re fantastic at resourcing.”

Finance trade publication PE Hub in May pegged Trace3’s earnings before interest, taxes, depreciation, and amortization at around $100 million, citing officials familiar with the company’s operations.

Trace3, with headquarters along the Santa Ana (5) Freeway in the Irvine Spectrum area, counted 25 offices nationwide as of May. It moved up three notches to No. 14 on this year’s Business Journal list of the county’s largest private companies by revenue. ■ \

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