tech-enabled services monthly january...
TRANSCRIPT
Tech-Enabled Services MonthlyJanuary 2015
Tech-Enabled Services Headline Transactions
TEV / Revenue TEV / EBITDA
LTM Gross & EBITDA Margins1-Year Revenue Growth
9.8x
12.2x
7.8x 7.6x
13.6x 12.9x
7.4x
0.0
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
ITS Offshore ITS HostingServices
IT Staffing TransactionProcessing
InfoServices
VAR
TEV
/ EBI
TDA
29.7% 35.6%
54.5%
19.8%
37.7%
60.6%
7.9% 10.9%
19.4%
33.9%
4.6%
22.1% 25.1%
2.8% 0%
10%
20%
30%
40%
50%
60%
70%
0%
10%
20%
30%
40%
50%
60%
70%
ITS Offshore ITS HostingServices
IT Staffing TransactionProcessing
InfoServices
VAR
LTM EB
ITDA
MarginLT
M G
ross
Mar
gin
Note: EBITDA Margins in red
Target Acquirer Acquisition Synopsis
Man
. Svs
. •
•
Knowledge IT is a provider of information communications technology (ICT), virtualization, cloud computing and data center solutionsOnyx Group, a provider of IT connectivity services, acquired Knowledge IT to strengthen its IT infrastructure and support services portfolio
ITS
IT Outsourcing Business
•
•
Xerox Corporation, a provider of business process and document management solutions, divested its IT Outsourcing Business to focus on its core BPO operationsAtos, a publicly-traded French IT services company, entered an agreement to acquire Xerox's ITO business unit for $1.1 billion to increase its US footprint and gain Xerox's blue-chip client roster
ITS
•
•
EVRY ASA is a publicly-traded IT consulting services company that provides business consulting, project management, systems development, infrastructure consulting and application management servicesApax Partners, a UK-based private equity firm with deep ITS expertise, entered a transaction agreement to acquire EVRY for $1.0 billion (0.6x LTM Revenue; 6.8x LTM EBITDA)
IT S
taff
ing •
•
Veredus Corporation, a technical staffing company, provides IT staffing services for contract and permanent placement throughout the USHays plc, an IT staffing and recruitment services company, acquired an 80% stake in Veredus at an implied enterprise value of $55 million (8.3x LTM EBITDA) to bolster its IT contracting services offering
Man
. Svs
. •
•
Presidio is a provider of IT consulting and infrastructure solutions, including deployment and integration, hardware and software development, cloud and hosting and operational support servicesApollo Global Management, a publicly-owned investment manager, entered into a definitive merger agreement to acquire Presidio from American Securities
1. Headline Transactions
0.9x
2.6x 2.3x
0.3x
3.1x 3.3x
0.2x
0.0
0.5x
1.0x
1.5x
2.0x
2.5x
3.0x
3.5x
ITS Offshore ITS HostingServices
IT Staffing TransactionProcessing
InfoServices
VAR
TEV
/ Rev
enue
16.8% 18%
Services Processing Services
2.8%
14.0%
4.0%
16.8%
6.8% 7.1%
9.8%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
ITS Offshore ITS HostingServices
IT Staffing TransactionProcessing
InfoServices
VAR
1-Ye
ar R
even
ue G
row
th
Select TM Capital Tech-Enabled Services Experience TM Capital’s Tech-Enabled Services Contacts
Bradford A. Adams Managing Director
617-259-2203 [email protected]
Jarrad S. Zalkin Managing Director
617-259-2207 [email protected]
Andrew O. Redmond Vice President 617-259-2215
Annc. Date Sector Acquirer Target Target Description
Enterprise Value Comments
12/23/14 Managed Services
Telstra Corporation Ltd.
Pacnet Ltd. Provides managed data connectivitysolutions to telecommunications carriers,large multinational enterprises andgovernment entities.
$697.0 Telstra entered an agreement to acquire Pacnet fromClearwater Capital Partners to accelerate its growthin Asia and strengthen the Company's enterpriseservices offering.
12/22/14 IT Services Cinven Ltd. Northgate Public Services Ltd.
Provides information technology softwaresolutions and services, includingtransformation, business, document,managed and energy efficiency services.
NA Cinven, a UK-based private equity firm, acquiredNorthgate Information Systems' Public Servicesbusiness unit, marking its 5th acquisition in 2014.
12/19/14 IT Services Accumuli plc RandomStorm Ltd.
Provides proactive security managementtools and services.
$13.9 Accumuli acquired RandomStorm for $13.9 million(2.5x LTM Revenue; 8.9x LTM EBITDA) to expand its IT security solutions and services framework.
12/18/14 VAR Advent International Corporation
Allied SA Distributes technological equipment,including mobile phones and accessories,tablets, notebooks, digital cameras, andcomputers.
NA Advent International, a global private equity firm,entered a definitive agreement to acquire Allied SA totake advantage of recent growth in the telecomsector.
12/10/14 Managed Services
Cisco Systems, Inc.
Neohapsis, Inc. Provides mobile and cloud security services,including application assessment,architecture design assessment, cloudapplication assessments, etc.
NA Cisco Systems announced its intent to acquireNeohapsis to complement its existing IT offering andto address clients' needs for information security andrisk management services.
12/09/14 Managed Services
iomart Group plc
ServerSpace Ltd. Provides IT managed data center services forvarious start-ups and businesses in theUnited Kingdom and internationally.
$6.7 Iomart Group, a cloud computing firm, acquired rivalcloud service provider ServerSpace in the midst ofbroader industry consolidation as part of its strategicexpansion plan.
12/02/14 Info Services Recall Holdings Ltd.
Business Records Management LLC
Provides document storage and destructionservices.
$77.0 Recall Holdings acquired Business RecordsManagement to enhance its presence in key USmarkets. Recall recently rejected an unsolicitedacquisition proposal from Iron Mountain.
3. TES Transactions
Select Tech-Enabled Services Transactions Announced in December 2014
www.tmcapital.com
New York641 Lexington Avenue30th FloorNew York, NY 10022Tel: 212.809.1360
Boston200 Clarendon Street25th FloorBoston, MA 02116Tel: 617.259.2200
Atlanta15 Piedmont Center NE Suite 1010Atlanta, GA 30305 Tel: 404.995.6230
TEV / EBITDA Multiples Over Time
9.8x
12.2x
7.8x
7.6x
13.6x
12.9x
7.4x3.0x
5.0x
7.0x
9.0x
11.0x
13.0x
15.0x
Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014
TEV
/ EBI
TDA
ITS Offshore ITS Hosting Services IT Staffing Transaction Processing Info. & Data VAR
Notes: USD in millions Source: Capital IQ, Company SEC Filings, industry research and TM Capital estimates