tech-enabled services monthly march 2015 - tm capital corp.€¦ · it staffing transaction...
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Tech-Enabled Services MonthlyMarch 2015
Tech-Enabled Services Headline Transactions
TEV / Revenue TEV / EBITDA
LTM Gross & EBITDA Margins1-Year Revenue Growth
10.1x
14.7x
8.9x 8.2x
14.1x 14.4x
7.1x
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
ITS Offshore ITS Hosting Services IT Staffing Transaction Processing Info. & Data VAR
30.2% 35.5%
53.8%
19.5%
37.6%
60.6%
7.9% 9.8%
19.0%
29.2%
4.4%
22.1% 24.2%
3.2% 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
. ••
Solbrekk is a Minneapolis-based cloud computing and managed IT services providerMarco, a provider of business IT consulting services and AV and document management services, acquired Solbrekk to augment its managed IT services division and expand its hosted and cloud service offerings
Man
. Svs
. •
•
Interxion Holding NV provides carrier-neutral colocation data center services and managed services comprising systems monitoring, systems management, engineering support and storage servicesTelicity Group, a UK-based data center provider, has agreed to acquire Interxion for $2.6 billion to capitalize on increased demand for data services and storage fueled by cloud computing and mobile
ITS
IT Services Subsidiary
•
•
CNO IT Services is an India-based subsidiary of CNO Financial Group, a publicly-traded life and health insurance company based in the USCognizant Technology Solutions Corporation signed an agreement to acquire CNO IT Services to bolster its presence in India; Cognizant will receive over 600 IT professionals from CNO
ITS
•
•
Innovative Computer Systems provides IT consulting services and managed services such as server, SQL, backup and virtual server maintenance and monitoring servicesIntellinet, a provider of management consulting and Microsoft-centric services, entered an agreement to acquire Innovative Computer Systems to enhance its managed services portfolio
Man
. Svs
. •
•
Latisys provides Infrastructure-as-a-Service solutions and hybrid cloud hosting services, enterprise cloud services, colocation services and managed IT servicesZayo Group, a provider of infrastructure solutions, agreed to acquire Latisys for $675 million from Great Hill Partners to strengthen its infrastructure services and expand its datacenter portfolio to 45 facilities
1. Headline Transactions
1.0x
3.1x
2.5x
0.3x
3.2x
3.8x
0.2x
0.0
0.5x
1.0x
1.5x
2.0x
2.5x
3.0x
3.5x
4.0x
ITS Offshore ITS HostingServices
IT Staffing TransactionProcessing
InfoServices
VAR
TEV
/ Rev
enue
16%
Services Processing Services
(1.6%)
11.9%
0.2%
13.4%
7.4%
3.5%
9.2%
(4%) (2%)
0%2%4%6%8%
10%12%14%16%
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 Description
Enterprise Value Comments
02/26/15 IT Services Ernst & Young Global Ltd.
C3 Business Solutions Pty Ltd.
Provides information management, analytics,and business intelligence consulting services
NA Ernst & Young entered an agreement to acquire C3Business Solutions to expand its service offering toinclude the delivery of hosted cloud solutions andinfrastructure managed services
02/20/15 Managed Services
Hitachi Systems, Ltd.
Cosmic Blue Team S.p.A.
Offers IT services which includes systemdesign and construction, cloud services anddata center services
NA Hitachi Systems agreed to acquire Cosmic Blue toexpand its presence in Europe, marking theCompany's seventh acquisition in twelve months
02/16/15 IT Services Altran Technologies S.A.
Nspyre B.V. Provides consultancy and projectmanagement, development, engineering, andSLA-based management
NA Altran agreed to acquire Nspyre to enhance itscapabilities in the high tech, traffic, infrastructure,automotive and energy sectors and obtain a strongposition in the Benelux countries
02/16/15 Managed Services
Hitachi Data Systems Corporation
oXya SAS Provides IT deployment, administration, andmanagement services for SAP solutions
NA Hitachi Systems announced plans to acquire oXya tobolster its managed services portfolio and add SAPexpertise to its capabilities
02/13/15 Managed Services
Above Security Inc.
Seccuris Inc. Provides cybersecurity consulting, riskmanagement, and managed services
NA Above Security acquired Seccuris as part of a strategicinitiative to become the only pure-play MSSP with twosecurity operations centers in Canada
02/03/15 IT Services Aon Hewitt LLC Kloud Ltd. Provides Workday consultancy services NA Aon Hewitt acquired Kloud to meet increased foreigndemand for Workday; through acquisition of Kloud,Aon Hewitt is the largest provider of Workday servicesin Europe
02/02/15 Managed Services
Arrow Electronics, Inc.
RD Trading Ltd. Provides IT disposal and asset recoveryservices
$84.1 Computacenter divested RD Trading to ArrowElectronics as part of a strategic initiative to focus onits core business
3. TES Transactions
Select Tech-Enabled Services Transactions Announced in February 2015
www.tmcapital.com
New York641 Lexington Avenue30th FloorNew York, NY 10022Tel: 212.809.1360
Boston201 Washington Street32nd FloorBoston, MA 02145Tel: 617.259.2200
Atlanta15 Piedmont Center NE Suite 1010Atlanta, GA 30305 Tel: 404.995.6230
TEV / EBITDA Multiples Over Time
10.0x
13.4x
7.9x
7.8x
12.3x
13.0x
7.1x3.0x
5.0x
7.0x
9.0x
11.0x
13.0x
15.0x
Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Jan 2015
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