The IT Solutions Franchisor Plans Fast-Paced Growth
Middle-market private equity firm HKW has acquired CMIT Solutions LLC, a franchisor that provides IT services that include cybersecurity. Craftsman Capital previously owned CMIT, which was founded in 1996. With the move to HKW change, CMIT Solutions’ leadership has a goal of doubling the technology franchisor’s revenue to $200 million by 2028.
HKW, with headquarters in Indianapolis, invests in profitable tech companies. CMIT, which has been experiencing a growth spurt, fits with the investment aims of HKW. The tech-services franchisor has been reaping dividends from recent upgrades to its operational efficiencies, sales and marketing efforts – actions that helped it reach $100 million-plus in revenues last year, more than a year ahead of its projections.
CMIT Looks Ahead
In announcing the new HKW alignment in a news release, CMIT Solutions CEO Roger Lewis said that “HKW shares our goal of accelerating our company’s growth while creating more value for our clients. Their expertise and support will be instrumental as we achieve the next phase of our maturity through new initiatives in marketing, sales and operations, including adding centralized fulfillment capabilities.”
In a nod to fulfillment, the news release disclosed that HKW has acquired HTW Inc., a managed service provider (MSP) that will “serve as the foundation of a corporate affiliate” to be a U.S. fulfillment center. This new program will deploy one of CMIT’s top-performing franchises to serve accounts in multiple locations and bolster CMIT’s resources to assist larger businesses with more-complex cybersecurity and other IT projects, according to CMIT Solutions. CMIT’s franchise locations will be able to share the resources of this affiliate to assist customers seeking specialized support.
About CMIT Solutions
Through its franchisees, Austin, Texas-based CMIT serves its business clients anywhere in the United States and Canada. As locally owned enterprises, CMIT Solutions’ more than 250 franchisees build close relationships with clients located near them.
In addition to IT management/monitoring/maintenance and cybersecurity, CMIT’s products and services encompass help-desk services, data backup and data recovery. CMIT Solutions has been on Entrepreneur magazine’s Franchise 500 list for eight straight years. The franchisor also has earned the ranking of World Class Franchise from the Franchise Research Institute.
The Cybersecurity Industry
Daniel Kim, a partner at HKW, said in the news release that “the MSP and cybersecurity industry continues to expand as businesses seek solutions to address increasing cyber threats and IT complexity.” He added that these businesses’ constant and growing needs present a “tremendous opportunity” for CMIT. “We’re excited to be part of helping the company build its scale to meet the growing demand for technology and security services in the coming years,” Kim said.
In addition to investing in technology businesses, HKW takes ownership stakes in companies in the health-and-wellness and business-services industries. It has made transitions and acquisitions throughout North America for more than 40 years.