Overview
- Founded in 1996 and headquartered in Greenville, NC, One Source is a managed services provider that implements and maintains telecom connectivity, infrastructure, and cybersecurity for mid-to-large enterprises with multilocation operations
- In October 2022, Genesis Park, in conjunction with two other investment firms, provided a credit facility to One Source to acquire Sumo Communications (“Sumo”) and pursue a roll-up strategy of independent telecom agents to further vertically integrate its business model
Investment Thesis
- Recurring Revenue Model with Strong Customer Retention. One Source’s core service offerings generate revenue from multi-year contracts with fixed monthly payments based on the number of locations and devices. One Source’s annual monthly recurring revenue retention averaged over 95% over the past four years
- Diverse Customer Base. One Source served a diverse blue-chip customer base with no customer representing more than 10% of revenue
- Large Addressable Market with Strong Secular Tailwinds. One Source operates in the multi-billion-dollar IT services industry that is experiencing rapid growth driven by increasing complexities and connectivity requirements
- Strong Leadership and Investment Partners. The CEO has significant experience in the telecommunications industry having served as CEO since 2016 and having built two previous technology firms. The additional investment partners have extensive experience in the IT services industry
Outcome
- Over the life of Genesis Park’s 18-month investment hold period, One Source successfully pursued its telecom roll-up strategy completing 11 acquisitions, nearly doubling revenue and tripling EBITDA
- In March 2024, Genesis Park was refinanced out of its investment in One Source after exhausting the limits of the credit facility and the lender group’s credit capacity as One Source continued its rapid pace of acquisitions
