Article/Intelligence
Service Express in Early Merger Talks With Park Place Technologies, Eyeing $2.8B Private Credit Financing
Warburg Pincus-backed Service Express is in merger talks with GTCR- and Charlesbank-owned Park Place Technologies. If finalized, the deal is expected to line up $2.8 billion financing from private lenders, according to sources.
Private lenders including Blackstone and Apollo are said to be involved in the potential debt facility funding the transaction, according to sources who also cautioned that the merger and debt financing are not final and terms could change.
Price talk on the $2.8 billion debt financing package is in the SOFR+450 bps and 99.5 OID area, sources said, adding that pro forma leverage would be 7x.
Park Place Technologies is a global data center service that provides hardware maintenance, software support, hardware procurement and other IT infrastructure services to 21,500 organizations, according to its website. Service Express offers infrastructure and data center solutions, helping more than 6,000 customers manage and optimize their IT systems, according to a press release. The two firms are roughly the same size, according to sources.
Park Place secured a $2 billion private debt refinancing led by Blackstone, along with participation from Blue Owl, in April 2024, according to press reports.
Warburg Pincus acquired Service Express from Harvest Partners in 2024, according to a press release. GTCR, which first acquired Park Place Technologies in 2015, sold a stake in the company to Charlesbank in 2019, according to a press release.
Park Place Technologies’ business development company, or BDC, creditors include Blackstone, Blue Owl and Crescent Capital, according to Octus’ BDC Database. A list of Park Place Technologies’ CLO lenders can be found HERE.
Service Express’ BDC creditors include KKR, according to Octus’ BDC Database. A list of Service Express’ CLO lenders can be found HERE.
Average pricing of senior direct debt to back M&A in the technology industry was roughly SOFR+539.3 bps in the second quarter of 2025, jumping from SOFR+513.6 bps in the first quarter, according to Octus’ Private Credit Dashboard.
Blackstone and Warburg Pincus declined to comment. Apollo, Park Place Technologies, Charlesbank Capital Partners, GTCR and Service Express did not respond to requests for comment.
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