Service Express, a provider of third-party, post-warranty data center maintenance services, has acquired Blue Chip, a third-party maintenance (TPM) and managed services company from the UK. The acquisition will help expand Service Express’s global platform. The acquisition is the fifth for Service Express and its first internationally.
Since 1993, Service Express is delivering on-site hardware maintenance for mission critical servers, storage and networking equipment. The company has grown rapidly with more than 50 offices across the United States and partnerships around the world. The acquisition of Blue Chip follows several years of partnership and shared client service between the two companies. Financial terms of the deal were not disclosed.
Service Express now serves more than 4,000 major enterprises. These clients include global manufacturers and integrated health systems as well as retail, higher education, financial services, cloud services and government clients across North America and internationally.
“Our acquisition of Blue Chip in many ways formalizes the two companies’ existing multi-year partnership,” said Ron Alvesteffer, President and Chief Executive Officer (CEO) of Service Express. “Our culture of growth, employee engagement, and differentiated customer experience aligns well with Blue Chip’s great reputation for building a talented and dedicated team that places customers at the heart of their service. The addition of Blue Chip enables our joint vision of growing a global portfolio to provide the best experience for our customers, partners and employees.”
IBM, U.S. M&A Strategy
The addition of Blue Chip is a transformative move for Service Express, according to the company, bringing together two similar cultures and complementary expertise, while increasing the business by 40% and leveraging a staff of team members worldwide.
Founded in 1987, Blue Chip has multiple locations in the United Kingdom and Europe. It also has a software development division based in Sri Lanka. Blue Chip is one of the largest maintainers of IBM mid-range systems outside of IBM itself and also a managed services solutions provider from its own UK-based data centers.
The combination with Service Express would accelerate opportunities for organic growth and additional acquisitions, with a new focus in EMEA countries to accompany its U.S. M&A strategy. The transaction will also enable Service Express to offer Blue Chip’s managed services expertise to its major enterprise customers both in the U.S. and abroad.
“We’re very pleased to be joining the Service Express team and helping to establish an even greater global leadership position,” said Andy Rounding, Finance Director at Blue Chip. “We are also proud to carry-on Blue Chip founder Brian Meredith’s legacy of an unwavering passion for exceptional customer service delivered by the very best people. His imprint on our company will continue to be instrumental in our united path forward. We will continue to execute on our core principles, alongside Service Express, through our shared commitment to surrounding ourselves with talented people who provide exceptional customer experiences.”
Private Equity Investment
Acquired in November 2019, Service Express is a portfolio company of Harvest, a New York-based private equity firm.
“This is an exciting new chapter for Service Express, as the company establishes its international beachhead,” said Stephen Fessler, Principal at Harvest and a Board Director at Service Express. “This combination is the natural extension of the close relationship the two companies have formed over the past two years, and we see this acquisition as a win-win for both companies and for their respective customers, who will benefit from expanded global capabilities and continued consistent, superior service.”
Ron Alvesteffer will serve as President and CEO of the combined company and will look to build around the current Blue Chip leadership team. Further operational and organizational details will be determined throughout the onboarding process. Rothschild & Co served as financial advisor to Services Express, with Investec Bank and Agile Equity advising Blue Chip.