mynth
07/2018

MOMENTUM acquired by COURT SQUARE CAPITAL PARTNERS

UNITED STATES IT Services / Infrastructure & Cloud / MSP (Managed Services) REV 100m USD - 500m USD

Context

Court Square Capital Partners has successfully closed a majority investment in Momentum Telecom. The transaction structure also includes substantial equity participation from Momentum Telecom’s senior management team, ensuring strong alignment of interests and operational continuity moving forward. This transaction represents a highly strategic platform investment for Court Square Capital Partners, allowing the firm to deploy its dry powder into a leading player within the unified communications space. For Momentum Telecom, partnering with a premier middle-market private equity sponsor provides the company with access to extensive capital resources and deep strategic expertise. The management team expects to leverage Court Square’s proven track record—spanning over 215 investments since 1979—and profound knowledge of the telecommunications industry to drive aggressive organic growth and expand its service footprint. The Bank Street Group LLC served as the exclusive financial advisor to Momentum, while SunTrust Robinson Humphrey advised Court Square in connection with this transaction.

MOMENTUM, which reported an EBITDA margin of LOGIN in 2018, is valued in this transaction at an EV/EBITDA multiple of LOGIN, a level to compare with the average currently observed in the TMT (Tech, Media, Telecom) sector (14.3x).

Note that this data is based on contribution from our growing community, composed of M&A and Private Equity professionals, and has been verified by our team to ensure its accuracy.

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Target

Momentum is a United States-based enterprise headquartered in Atlanta, functioning as a leading global managed services provider (MSP). he organization designs and deploys comprehensive networking frameworks, delivering robust, secure connectivity, voice, and managed technological solutions to a diversified corporate clientele worldwide. The enterprise is positioned as a formidable global challenger in the managed services and telecommunications sector. It differentiates itself through a highly expansive global network infrastructure paired with a strong commitment to localized, personalized service delivery. Focusing on its economic model, Momentum operates on a resilient, contract-based recurring revenue framework typical of top-tier MSPs, ensuring high revenue visibility and strong cash flow generation.

Ent. Value

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Multiples

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EV / EBITDA

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Historical Financials (USD)

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2018
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Other operations with MOMENTUM

List of similar M&A transactions (Date, Acquirer, Target, Country, Sector, Deal Context)
DateAcquirerTargetCountrySectorDeal Context
04/2025MOMENTUMSECHER SECURITYDENMARKIT Services

Momentum, operating as a portfolio company of the US-based private equity fund Court Square Capital, has executed the acquisition of Secher Security. The transaction was structured as a strategic add-on investment to bolster Momentum's existing technological capabilities. This operation is highly value-accretive, designed to aggressively accelerate Momentum’s EMEA growth trajectory. Following the integration of Horizon Telecom in early 2024, deploying dry powder for Secher Security establishes a deeply complementary synergy. It cross-pollinates Momentum’s expansive network reach with Secher’s niche cybersecurity expertise, fulfilling a core strategic objective to deliver a comprehensive, globally integrated connectivity and security suite while solidifying market share in the Nordic region. This acquisition highlights the growing imperative for telecommunications providers to own proprietary security layers, setting a benchmark for future convergence plays in the rapidly shifting European digital landscape.

REFERENCES

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Authors: verified mynth contributor (mynth data is contributed by M&A / PE professionals and systematically cross-verified with private deal documents and official press releases).

Press release: view release

Target: momentum

Acquirer: court square capital partners