Apollo Funds Acquire Trace3 in Deal with American Securities

Apollo Global Management's funds have reached an agreement with American Securities to acquire Trace3, a provider of enterprise and commercial technology solutions. Financial terms were not disclosed. American Securities will retain a significant minority equity interest in the company. This acquisition is a strategic move by Apollo to expand its portfolio in the technology sector.

Apollo Global Management's funds have reached an agreement with American Securities to acquire Trace3, a leading provider of enterprise and commercial technology solutions. The acquisition aims to expand Apollo's portfolio in the technology sector, particularly in the areas of artificial intelligence, cloud computing, and cybersecurity services. American Securities will retain a significant minority equity interest in the company, indicating confidence in Trace3's continued growth potential.

Trace3, founded in 2002, has established a strong market position as a technology solutions provider serving enterprise and commercial clients, including many Fortune 500 companies. The company's expertise spans critical high-growth areas including AI implementation, cloud infrastructure, security solutions, data analytics, and managed services—all sectors experiencing accelerated demand as organizations undergo digital transformation.

The acquisition aligns with Apollo's demonstrated track record in the IT services sector, following previous investments in Presidio and TD SYNNEX. Apollo's strategic move to acquire a controlling stake in Trace3 positions the firm to benefit from the rapidly expanding market for AI-related services and infrastructure, positioning the firm to capitalize on what many consider to be a multi-year technological investment cycle.

The transaction structure, with American Securities maintaining a minority stake, suggests a shared vision for Trace3's future growth. Apollo has indicated three specific growth strategies: expanding AI-related service offerings, developing additional high-value services, and pursuing strategic M&A to accelerate growth. While financial terms were not disclosed, this acquisition adds a growing technology services business to Apollo's portfolio at a time when enterprise technology spending, particularly around AI implementation, remains robust despite broader economic uncertainties.

References:
[1] https://finance.yahoo.com/news/apollo-funds-reach-agreement-american-203000269.html
[2] https://www.stocktitan.net/news/APO/apollo-funds-reach-agreement-with-american-securities-to-acquire-x6t1ejlmm1e2.html