Trace3 Enters New Era of Growth and Innovation with Apollo Funds Acquisition
Trace3, a leader in advanced technology solutions, today announced the completion of its acquisition by funds managed by affiliates of Apollo (NYSE: APO), marking the start of an exciting new chapter for the company. The transaction, which sees Apollo Funds take the reins from American Securities, positions Trace3 to accelerate its growth and expand its capabilities across emerging technologies such as artificial intelligence (AI), cloud computing, data analytics, and cybersecurity. Notably, American Securities will retain a significant minority equity interest, underscoring its continued belief in Trace3’s potential.
As part of this transition, Joe Quaglia has been appointed as Trace3’s new Chief Executive Officer, succeeding Rich Fennessy, who will assume the role of Executive Chairman. Fennessy, who led Trace3 through a period of unprecedented growth and innovation, will remain actively involved as a member of the board of directors, ensuring continuity and supporting the company’s next phase of evolution.
A Bold Vision for the Future
In his first statement as CEO, Joe Quaglia emphasized the transformative nature of this acquisition. “Trace3’s next chapter is about scaling our impact,” Quaglia said. “With Apollo’s partnership, we’re unlocking opportunities to bring innovation and advanced solutions to our clients faster and at greater scale. This is more than a financial transaction—it’s the beginning of a bold evolution for our business to better support our partners, our clients, and our teammates.”
Quaglia brings 39 years of industry experience to his new role, during which he has played a pivotal role in expanding Trace3’s capabilities and market presence. Under his leadership, the company has strengthened its partnerships, deepened its technical expertise, and fostered a culture defined by innovation, integrity, and client success. As CEO, Quaglia will leverage this foundation to guide Trace3’s continued growth in an increasingly dynamic technology landscape.
Strategic Support from Apollo Funds
The acquisition by Apollo Funds represents more than just a change in ownership—it provides Trace3 with the capital and strategic resources needed to accelerate its expansion into key areas. These include AI enablement, cybersecurity, and next-generation data solutions, all of which are critical to helping clients navigate the complexities of digital transformation.
Robert Kalsow-Ramos, Partner at Apollo, expressed enthusiasm about the partnership. “We believe Trace3 is uniquely positioned at the intersection of technology, innovation, and execution,” he said. “Amid rising demand for tailored IT tools and solutions, we are excited to work alongside the Trace3 team to advance its mission of empowering clients to embrace AI and digital transformation with confidence.”
American Securities, which has played a vital role in Trace3’s journey, also voiced strong support for the company’s future. “The Trace3 team has built an exceptional business and culture focused on innovation and client success,” said Kevin Penn, Partner at American Securities. “We’re proud of what the company has achieved and are excited to continue our partnership alongside Apollo Funds. We look forward to supporting Trace3’s continued expansion.”
A Legacy of Excellence
Trace3’s transition to this new era builds on a legacy of excellence spanning over two decades. Since its founding in 2002, the company has earned a national reputation for combining deep technical expertise with forward-thinking innovation. Its ability to help clients modernize, innovate, and secure their digital futures has made it a trusted partner for organizations navigating complex technological challenges.
For Rich Fennessy, the acquisition marks a powerful validation of Trace3’s brand, culture, and people. “This milestone represents a testament to the incredible foundation we’ve built together,” Fennessy said. “With the support of Apollo Funds and Joe’s leadership, Trace3 is poised to redefine what’s possible for our clients and partners. The foundation we’ve built has never been stronger.”
A Foundation for Continued Success
The acquisition by Apollo Funds signals a new wave of investment and strategic focus for Trace3. With expanded resources and a clear vision for the future, the company is well-positioned to meet the growing demand for advanced IT solutions. By doubling down on its commitment to innovation, client success, and cutting-edge technologies, Trace3 aims to solidify its leadership in the rapidly evolving tech landscape.
The transaction was supported by a team of advisors who played key roles in facilitating the deal. Citi served as the lead financial advisor, with Wells Fargo and Royal Bank of Canada also providing financial advisory services. Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as legal counsel to the Apollo Funds. On the Trace3 side, Guggenheim Securities, LLC served as financial advisor, and Kirkland & Ellis LLP provided legal counsel. Additionally, Jefferies advised American Securities.
About Trace3
Trace3 is a premier provider of technology consulting services and advanced IT solutions. Founded in 2002, Trace3 empowers organizations to embrace digital transformation through elite expertise and insightful innovation. With deep roots in data, security, cloud, and AI, Trace3 helps clients modernize their IT environments and capture opportunity in the age of intelligent infrastructure. Learn more at www.trace3.com.
