H.I.G. Capital Forges $4 Billion Tech Powerhouse Pellera Through Strategic Merger

In a transformative move reshaping the enterprise technology services landscape, H.I.G. Capital has merged portfolio companies Converge Technology Solutions and Mainline Information Systems to create Pellera Technologies – a $4 billion revenue platform positioned to lead corporate digital transformation initiatives. The deal combines Converge’s software-enabled IT solutions with Mainline’s infrastructure expertise, creating one of North America’s most comprehensive providers of cybersecurity, hybrid cloud, and AI implementation services[12][15].

Strategic Rationale Behind the Merger

Addressing Complex Enterprise Demands

The merger directly responds to enterprise clients’ escalating needs for integrated digital transformation partners. Where Converge brought strength in application modernization and AI workflow integration, Mainline contributed deep infrastructure optimization capabilities across 850+ technology certifications[11][14]. This combination creates a rare single-source provider able to manage everything from legacy system migration to cutting-edge AI deployment[12].

Financial and Operational Synergies

Pellera achieves immediate scale with 4,000+ clients and $1.4 billion in combined pro forma EBITDA. The merger unlocks $150 million in annual cost synergies through:

H.I.G.’s operational playbook will drive further margin expansion through centralized back-office functions and cross-selling opportunities across the combined 3,000+ enterprise accounts[12][14].

Leadership and Integration Strategy

Executive Team Composition

CEO Greg Berard brings 15 years of technology services experience from Converge and Lighthouse Computer Services, having grown software-enabled revenues by 300% since 2020[13]. COO Jeff Dobbelaere contributes 23 years of infrastructure expertise from Mainline, where he oversaw $1 billion+ in data center deployments[14].

Integration Roadmap

The 18-month integration plan prioritizes:

H.I.G. has committed $200 million in growth capital to fund the integration while maintaining 15%+ EBITDA margins[12][15].

H.I.G.’s Tech Sector M&A Playbook

Recent Acquisition Activity

The Pellera deal continues H.I.G.’s aggressive tech sector investment strategy:

This pattern demonstrates H.I.G.’s focus on building vertical expertise through complementary add-ons[15][16][17].

European Expansion Parallels

While consolidating North American tech services, H.I.G. continues European investments:

• €500M in French last-mile logistics properties[18]
• £300M Cambridge life sciences campus[19]
• Strategic stake in German industrial automation leader HELLER Group[20]

This dual-axis strategy balances mature market consolidation with growth territory expansion[17][18][19].

Market Impact and Competitive Landscape

Enterprise Tech Services Outlook

Pellera enters a $850 billion global IT services market growing at 8.4% CAGR, with particular strength in:

The combined company’s full-stack capabilities position it to capture share from legacy providers like IBM and Accenture[12][15].

Private Equity’s Tech Services Push

H.I.G. joins peers like Thoma Bravo and Vista Equity in building scaled tech platforms:

This consolidation wave reflects PE’s appetite for mission-critical IT services with recurring revenue models[12][15].

Future Outlook and Challenges

Growth Initiatives

Pellera’s 2026 roadmap includes:

These investments aim to capture $1.2 billion in incremental revenue by 2027[12][15].

Integration Risks

Key challenges include:

• Cultural integration across 4,000 employees
• Rationalizing 1,000+ vendor partnerships
• Maintaining service levels during platform unification

H.I.G. has allocated $30 million for change management programs to mitigate these risks[12][14].

Conclusion: A New Era in Tech Services

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