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Trace3 and Data Strategy to Combine Through Strategic Investment by H.I.G. Capital, Creating a National IT Solutions Provider

MIAMI – August 6, 2018 – H.I.G. Capital ("H.I.G."), a leading global private equity and alternative asset firm with over $25 billion of equity capital under management, is pleased to announce that its portfolio company, Trace3, has combined with Data Strategy, LLC (“DSI”) to create a nationwide provider of Cloud, Data Intelligence, Security, DevOps and Enterprise IT solutions with a strong emerging technology focus. The combination creates a national leader with total revenues in excess of $1 billion.

This combination will allow Trace3 and DSI to immediately deliver an expanded capability set to their clients. Trace3 clients can now access the depth of DSI’s mobility, collaboration, integration, inventory and managed services capabilities, including the multiple 24x7x365 redundant Network Operations Centers and in-house tier 1-3 support services. DSI clients can now access Trace3's security, data intelligence and cloud capabilities.

Keith Harrold, Chief Executive Officer of DSI, and a shareholder in the combined entity stated: “I’m excited for the future; this is an important milestone for our team and our clients. Supporting our people and our company’s culture were key considerations, and we have found a partner who is like-minded, with complementary expertise and footprint.”

Tyler Beecher, Trace3’s Chief Executive Officer, stated: “We are committed to bringing together the best of established and emerging technology and meeting our clients’ needs. We are confident the addition of DSI’s engineering talent, as well as its impressive mobility, integration, inventory and managed services capabilities, will further enhance the creative solutions we deliver each day to our clients. We look forward to working with the talented DSI team to unleash the full potential of our combined expertise and capabilities.”

Dana Jacks, President of DSI, stated: “Our ability to solve problems for – and deliver exceptional value to – our clients is at the heart of everything we do, and this strategic combination is no exception. Combining with Trace3 will give our clients access to a broader portfolio of security, data intelligence and cloud capabilities. At the same time, our clients will continue to benefit from the deep engineering expertise that has long been a hallmark of both companies. We see tremendous opportunity in this partnership and look forward to collaborating with Trace3 to bring the technologies of tomorrow to our clients today.”

About Trace3
As the Transformative IT Authority, Trace3 is the premier technology solutions provider for medium- and large-sized enterprise clients. Through elite engineering and dynamic innovation, Trace3 empowers executives and their organizations to keep pace within the IT/corporate landscape through the transformative power of technology. Founded in 2002, Trace3 has kept pace with the needs of IT leaders by providing them access to emerging technology from Silicon Valley and building end-to-end Cloud, Data Intelligence, Security, DevOps and Data Center solutions. Headquartered in Irvine, California, Trace3 has additional offices in the Bay Area, Los Angeles, San Diego, Boise, Salt Lake City, Denver, Phoenix and New Jersey. For more information, please refer to Trace3’s website at www.trace3.com.

About Data Strategy
Data Strategy is a technology solutions provider that specializes in integrating data center solutions in the mid-market and enterprise business segments. Data Strategy helps organizations leverage technology to meet business goals with an unbiased approach to technology and workload placement. Along the way, Data Strategy addresses the foundational aspects of IT, including Cloud, Data, Mobility and Security to ensure a customer’s business is more secure, more flexible and more productive. Data Strategy is known for its top-notch engineering talent and maintains partnerships with leading information technology manufacturers across the globe. The company is headquartered in Grand Rapids, Mich. and maintains offices in Atlanta, Cincinnati, Columbus, Detroit, Indianapolis, Louisville, and Lexington. Learn more at www.data-strategy.com.

About H.I.G. Capital
H.I.G. is a leading global private equity and alternative assets investment firm with over $25 billon of equity capital under management.* Based in Miami, and with offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, and Atlanta in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Milan, Paris, Bogotá, Mexico City, Rio de Janeiro and São Paulo, H.I.G. specializes in providing both debt and equity capital to small and mid-sized companies, utilizing a flexible and operationally focused/ value-added approach:

  1. H.I.G.’s equity funds invest in management buyouts, recapitalizations and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses.
  2. H.I.G.’s debt funds invest in senior, unitranche and junior debt financing to companies across the size spectrum, both on a primary (direct origination) basis, as well as in the secondary markets. H.I.G. is also a leading CLO manager, through its WhiteHorse family of vehicles, and manages a publicly traded BDC, WhiteHorse Finance.
  3. H.I.G.’s real estate funds invest in value-added properties, which can benefit from improved asset management practices.

Since its founding in 1993, H.I.G. has invested in and managed more than 300 companies worldwide. The firm's current portfolio includes more than 100 companies with combined sales in excess of $30 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.

* Based on total capital commitments managed by H.I.G. Capital and affiliates.