Cobalt Service Partners Acquires Tulsa-Based Digi Security Systems
Infinity Capital Partners advised Digi Security Systems on the transaction which closed June 5, 2024
Tulsa, OK (June 25, 2024) – Digi Security Systems, LLC (“Digi” or “Company”), a Tulsa-based security systems integrator, has been acquired by Cobalt Service Partners (“Cobalt”), a portfolio company of Alpine Investors (“Alpine”). Digi’s management team will remain in place as they transition into the broader Cobalt platform.
Incorporated in 2003 by Josh Herron, Digi provides high-end, customized solutions for enterprise-level customers across an array of mission-critical industries, most notably education and government. Digi has grown to become a regional leader in low-voltage commercial security systems design, integration, and service, providing its customers with industry leading quality and expertise. RAE Corporation, led by Eric Swank, established a majority equity stake in Digi in 2014 and helped to guide the Company to a market-leading position.
“The Cobalt team is phenomenal,” said Herron, who will continue in his role as President of Digi. “Over a hundred companies sought our partnership, but Cobalt stood out as a team 100 percent dedicated to the same thing we are – people. We couldn’t be more excited about this next era in Digi’s history.”
“I couldn’t ask for a better company than Cobalt to partner with Digi,” said Eric Swank. “Cobalt’s culture and performance were a perfect fit for us, and the combination will lead to even greater performance for Digi’s people and partners.”
The transaction marks Cobalt’s seventh acquisition since launching the access solutions platform in December 2023. “We couldn’t be more excited to welcome Digi into the Cobalt family of companies. Digi is a leading business with great customers in strong and growing markets,” said Cobalt Co-CEO Tyler Hoffman. “Further, the Digi team is relentless in its commitment to its people - a mentality we share at Cobalt. We truly can’t wait to both help and learn from the Digi team in the coming months.”
“The Digi team has done a tremendous job in establishing market leadership with best-in-class customer service and processes. We are thrilled at the opportunity for them to bolster the Cobalt platform and realize continued market-leading performance,” said Ben Lewallen, Vice President at Infinity Capital Partners.
Infinity Capital Partners served as Digi’s exclusive investment banking advisor, and McAfee & Taft served as Digi’s legal counsel. Kirkland & Ellis served as legal counsel to Cobalt.
About Cobalt Service Partners
Cobalt Service Partners buys and builds market-leading access solutions businesses. Cobalt offers founders a long-term home for their business; and through its commitment to people, technology, and unwavering stewardship, Cobalt aims to secure legacies and unlock possibility. For more information, visit www.cobaltsp.com.
About Alpine Investors
Alpine Investors is a people-driven private equity firm committed to building enduring companies by working with, learning from, and developing exceptional people. Alpine specializes in investments in the software and services industries. Alpine’s PeopleFirst strategy includes a talent program that allows Alpine to bring leadership to situations where additional or new management is needed post-transaction. Alpine has $16 billion in assets under management as of June 30, 2023, and has three offices in San Francisco, New York, and Salt Lake City. For more information, visit www.alpineinvestors.com
About Infinity Capital Partners
Infinity Capital Partners is an Oklahoma City-based middle-market investment bank offering a broad range of advisory services to private companies and financial sponsors across a variety of industries. Infinity works closely with owner-operators, shareholders, founders, and management teams of private companies to provide tailored services including M&A advisory, debt and equity placements, recapitalizations, and strategic advisory. For more information about Infinity Capital Partners please visit our website at www.infinitycapitalpartners.com. Securities placed through Infinity Capital Securities, LLC. Member FINRA.