Introduction
Harvest Partners has finalized its acquisition of Service Express, a leading provider in the post-warranty data center maintenance sector. This strategic move marks a significant step for both companies, promising enhanced service delivery and expanded market reach within the critical data center services landscape. Service Express, renowned for its commitment to extending the lifespan and optimizing the performance of mission-critical data center equipment, is set to leverage Harvest Partners’ resources to accelerate its growth trajectory.
Acquisition Details: A Partnership for Growth
The acquisition, completed in November 2019, saw Harvest Partners acquire Service Express from Pamlico Capital. While the financial details of the transaction remain undisclosed, the leadership of Service Express, under CEO Ron Alvesteffer, will continue to steer the company’s operations and maintain a significant ownership stake. This continuity in leadership ensures that Service Express’s customer-centric approach and dedication to service excellence will remain at the forefront. This acquisition signals a strong vote of confidence in Service Express’s business model and its potential for continued expansion in the competitive market of data center maintenance services.
Service Express: A Leader in Post-Warranty Data Center Maintenance
Headquartered in Grand Rapids, Michigan, Service Express has established itself as a premier third-party maintenance (TPM) provider. The company specializes in delivering post-warranty support for data center infrastructure, including servers, storage, and network equipment. Service Express distinguishes itself by offering services that not only maintain but also extend the operational life of essential data center equipment. Their value proposition is built on delivering quicker response times and more cost-effective solutions compared to original equipment manufacturers (OEMs) post-warranty support. This makes “service express” a highly attractive option for over 4,000 customers seeking reliable and efficient maintenance solutions to minimize downtime and optimize their IT infrastructure investments.
Executive Perspectives on the Acquisition
Ron Alvesteffer, CEO of Service Express, expressed enthusiasm about the partnership with Harvest Partners, stating, “After a great partnership and successful run with Pamlico, we are excited to partner with Harvest as we move towards our next phase of growth and expansion.” He highlighted Harvest’s alignment with their strategic growth plans and their focus on people, culture, and systems as key factors in choosing this partnership. Alvesteffer envisions leveraging Harvest’s resources to expand Service Express’s office footprint and market penetration, creating more jobs and opportunities while upholding their commitment to best-in-class customer service.
Jay Wilkins, Chief Operating Officer of Harvest, acknowledged Service Express’s market leadership, stating, “Ron and his team have done an incredible job creating a market leader in the data center TPM industry.” Harvest Partners aims to provide the financial and strategic resources necessary to further solidify Service Express’s leadership position and support its continued growth in the dynamic data center service sector.
Stephen Carlson, Partner at Harvest, emphasized Service Express’s rapid growth within the industry, noting, “We have evaluated every scale asset in the TPM space and Service Express is the fastest growing player in the industry.” This recognition underscores the strategic rationale behind the acquisition and Harvest Partners’ belief in Service Express’s potential.
Stephen Fessler, Principal at Harvest, highlighted the company’s customer-centric approach: “Customers value Service Express’ customer-centric philosophy and commitment to service excellence, and we are thrilled to be partners with the Company through its next chapter of growth.” This focus on customer satisfaction is a cornerstone of Service Express’s success and a value that Harvest Partners intends to support and enhance.
Advisory Teams
Pamlico and Service Express received financial counsel from Rothschild & Co and William Blair, with legal advice from Alston & Bird LLP. Harvest Partners was advised by Moelis & Company and Harris Williams for financial matters, and Kirkland & Ellis LLP served as their legal advisor. The Board of Directors of Service Express will now include Jay Wilkins, Stephen Carlson, and Stephen Fessler from Harvest Partners, alongside Ron Alvesteffer, further integrating the partnership at a governance level.
About Service Express
Service Express is a leading third-party maintenance provider specializing in hardware support for critical data center infrastructure. Founded in 1993, the company offers a comprehensive suite of services beyond post-warranty maintenance, including hardware system solutions, sales and upgrades, OS support, IT asset recovery, and data center relocation services. Serving a global clientele of mid-to-large organizations across various sectors—from healthcare to finance and government—Service Express ensures the seamless operation of multivendor data center equipment. For additional details, please visit www.serviceexpress.com.
About Harvest Partners
Established in 1981, Harvest Partners is a prominent private equity firm based in New York. The firm focuses on investing in middle-market companies across business services, consumer, healthcare, industrial services, and manufacturing & distribution sectors. Leveraging over 35 years of experience, Harvest Partners supports organic and acquisition-driven growth strategies for its portfolio companies. More information is available at www.harvestpartners.com.
