Article/Intelligence
UPDATE 1: Apollo Lines Up $950M in Debt Financing via RBC to Finance $1.65B Trace3 LBO
Tue Aug 12, 2025 03:30 PM ET: Apollo Global Management is lining up $950 million in debt financing to back its $1.65 billion acquisition of information technology and consultation services provider Trace3, according to sources.
Trace3’s $950 million financing package includes a term loan and an asset-based loan being arranged by RBC Capital Markets, according to sources.
Apollo acquired Trace3 for $1.65 billion, as Octus reported. Private equity firm American Securities, which invested in the company in 2021, will retain a significant minority equity interest, according to a press release announcing the acquisition. Octus first reported last week that Apollo was in the running to acquire Trace3.
Irvine, Calif.-based Trace3 is an IT consulting organization specializing in AI, data, cloud and cybersecurity, founded in 2002. The company generates $180 million in EBITDA, as reported.
Trace3’s existing SOFR+425 bps 2028 first lien term loan was last trading in the secondary on Aug. 12 at 100/101, according to Solve.
Apollo declined to comment. RBC Capital Markets and Trace3 did not respond to requests for comment.
Original Story 7:18 a.m. UTC on Aug. 12, 2025
Apollo Reaches a Deal to Buy Technology Solution Provider Trace3 for $1.65B
Apollo Global Management has reached a deal to buy information technology and consultation services provider Trace3 for $1.65 billion, according to sources.
Private equity firm American Securities, which invested in the company in 2021, will retain a significant minority equity interest, according to a press release to announce the acquisition. Financial terms were not disclosed.
Irvine, Calif.-based Trace3 is an IT consulting organization specializing in AI, data, cloud and cybersecurity, founded in 2002. The company generates $180 million in EBITDA, as Octus reported, citing Apollo among the bidders.
Apollo opted to line up debt financing in the broadly syndicated loan market to finance the acquisition, which leverages the business at 5.3x to 5.5x the company’s EBITDA, said sources.
Citi served as lead financial advisor, while Wells Fargo and Royal Bank of Canada served as financial advisors to funds managed by Apollo, said the press release.
Paul, Weiss, Rifkind, Wharton & Garrison served as legal counsel to the Apollo Funds. Guggenheim Securities served as financial advisor, and Kirkland & Ellis served as legal counsel to Trace3 and American Securities. The current acquisition is subject to closing conditions and regulatory approvals.
Apollo has long experience investing in the IT services and distribution space, including previous investment in IT infrastructure solutions provider Presidio, among others.
Trace3, which is an IT solutions provider to commercial and enterprise clients, including many of the Fortune 500, has made two acquisitions over the past eight months. In December 2024, the company acquired sector-focused technology provider Zivaro, and in June it purchased data center-focused technology provider IVOXY.
In December 2024, Trace3 upsized its fungible incremental first lien term loan B due 2028 from $52 million to $90 million via Santander, according to Octus. The facility was talked at SOFR+CSA+425 bps at 99.5 OID.
A list of deals in the information technology sector can be seen HERE.
American Securities and Citi declined to comment. Apollo Global Management, Trace3, Wells Fargo and Royal Bank of Canada did not return requests for comment.
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