Virtual IT Group secures strategic investment from Riverside Company to accelerate growth
Virtual IT Group (VITG), an Australian IT Managed Service Provider, has entered into a definitive agreement securing a significant investment from global mid-market private equity firm, The Riverside Company (Riverside). This collaboration is set to propel VITG’s expansion both organically and through mergers and acquisitions (M&A), enhancing their capabilities in cloud, communications, business continuity, and cybersecurity services across Australia and globally.
Founded in 2015 by Christian Pacheco, VITG has grown rapidly, employing over 200 staff and expanding its reach along Australia’s east coast, including a notable expansion into Victoria. This strategic move targets the 18,000+ middle-market companies in Australia, contributing significantly to the nation’s economy. VITG’s services cater to a broad range of clients, from mid-sized to increasingly large-scale enterprises, emphasizing the firm’s robust heritage in innovation and automation.
The digital technology sector in Australia is witnessing rapid growth, with an 80% expansion over the past five years, reaching a market valuation of $167 billion. Similarly, the annual spend on IT services in the country stands at approximately $45 billion, growing at a high single-digit rate annually. These statistics highlight the burgeoning demand for high-quality IT services and VITG’s critical role within this dynamic market.
The investment by Riverside, alongside the continued leadership of Christian Pacheco who remains a significant shareholder and Managing Director, signifies a strong vote of confidence in VITG’s potential. Riverside brings to the table its extensive experience and a global network of experts, aiming to enhance VITG’s service quality through specialization by industry and technical capability.
Christian Pacheco expressed enthusiasm about the partnership, stating, “We are thrilled to be partnering with Riverside’s global team of specialists to take our business to the next level.” Nicholas Pejnovic, Principal at Riverside, echoed this sentiment, emphasizing the firm’s commitment to investing in high-quality technology-oriented B2B businesses.
This partnership is expected to enhance VITG’s focus on organic growth and continuous improvement in service quality, supported by significant advancements in automation and strategic add-ons. The collaboration is poised to set a benchmark in the IT services industry, driving forward innovations and superior client service.