Re:Apollo Global is buying Rackspace for $4.3B
by postgeographic on Friday August 26, 2016 @01:27PM
(#12367789)
Yeah, that's called a buy-and-build strategy, or a bolt-hole strategy. A large number of industries or market segments that are fragmented end up consolidating this way. For example, Lumison is a data center business here in the UK, and they got bought out by Bridgepoint Development Capital. Subsequently BDC and Lumison went on to buy a few other data centers, making one larger data center with the attendant economies of scale
What do PE companies do with more than one company with kind of dated offerings in the same/similar niche?
Reduce the fat, merge them and sell them to a large company?
E.g. Qlik, Riverbed and Dynatrace https://thomabravo.com/portfolio/all/current/