Chicago, IL – November 10, 2021
Frontenac has completed a majority recapitalization of RCG Global Services ("RCG" or the "Company"), a global digital transformation consultancy providing product engineering, advanced analytics, and cloud services to Fortune 1000 enterprises. Financial terms of the transaction were not disclosed.
RCG combines digital strategy consulting with modern engineering expertise to build innovative, digital solutions for complex business initiatives at blue-chip enterprises in the financial and insurance services, consumer services, and healthcare verticals. The Company's global presence includes six offices throughout the US as well as development centers in the Philippines and India.
Rob Simplot, RCG's President and CEO, said, "RCG is experiencing rapid growth and the partnership with Frontenac is the next step in the Company's quest to build a global digital consulting powerhouse. The Frontenac team is an experienced group of investors who believe in RCG. They are committed to helping RCG grow and improve its digital consulting service offerings and capabilities for the Fortune 1000 marketplace. Frontenac brings extensive industry experience and I look forward to working with them to capitalize on organic and inorganic growth opportunities."
Michael Langdon, Managing Director at Frontenac, said, "Together with Rob and the RCG team, we look forward to continuing RCG's goal of becoming the preeminent digital consultancy with end-to-end capabilities. With our history of working with leading tech-enabled services companies, RCG is a strong fit with Frontenac. We are excited to partner with the team and build upon RCG's history of success." Joe Rondinelli, Principal at Frontenac added, "RCG is uniquely positioned in the digital transformation industry with deep vertical market expertise and a global delivery model that designs and builds technology solutions for its clients. We will look to accelerate its growth by investing in leading technology capabilities such as AI, machine learning and advanced analytics, among others."
Concurrent with the recapitalization, Aziz Virani, a Frontenac executive partner and 30+ year IT services veteran, joins the Board of Directors as Chairman. Virani was formerly with Accenture as the Global Managing Partner, Technology practice for the Financial Services Operating Group, and a member of Accenture's Global Executive Council. He is also the former CEO of CLEAResult and President – North America, for Avanade, a global professional services company providing IT consulting services for the Microsoft platform. "This announcement marks the beginning of an exciting new chapter for RCG," said Virani. "We look forward to partnering with Rob and his management team to enhance the culture of client service, high performance and teamwork that RCG has established over nearly 47 years. We are excited to collaborate in executing our shared objective of providing increased value to RCG's customers, driving the next stage of growth initiatives and becoming the leading platform for digital transformation and managed services."
Honigman LLP served as legal counsel to Frontenac on the transaction. Clearsight Advisors acted as the sole financial advisor to RCG, and Winston & Strawn LLP served as legal counsel to the Company.
About RCG Global Services
RCG is a global provider of digital transformation consulting services, combining digital strategy and modern cloud and data technologies to deliver measurable business outcomes for customer engagement, workforce enablement, and operations optimization. RCG helps customers ignite transformational thinking and unlock new value throughout their journey to achieve their digital ambitions. RCG serves Fortune 1000 enterprise clients across a range of markets, with special emphasis on the consumer, financial services & insurance, and healthcare industries. RCG is based in Iselin, New Jersey, with offices throughout the United States, and offshore delivery centers in the Philippines and India. For more information, please visit www.rcgglobalservices.com.
Frontenac is a Chicago-based private equity firm. The firm focuses on investing in lower middle market buyout transactions in the consumer, industrial, and services industries. Frontenac works in partnership with established operating leaders, through an executive-centric approach called CEO1ST, which seeks to identify, acquire, and build market-leading companies through transformational acquisitions and operational excellence. Over the last 50 years, Frontenac has built a leading franchise working with over 275 owners of mid-sized businesses as they address complex transition issues of liquidity, management enhancement, and growth planning. For more information, please visit www.frontenac.com.