Tech-Enabled Services Monthly March 2017 · 2020. 1. 1. · Tech-Enabled Services Headline...
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Tech-Enabled Services Headline Transactions Enterprise Value / LTM Revenue Enterprise Value / LTM EBITDA LTM Gross & EBITDA Margins 10.7x 10.7x 6.7x 11.1x 15.6x 14.2x 8.0x 0.0 2.0x 4.0x 6.0x 8.0x 10.0x 12.0x 14.0x 16.0x 18.0x ITS Offshore ITS Managed Services IT Staffing Transaction Processing Info Services VAR 28.7% 33.3% 49.6% 18.8% 43.1% 61.0% 11.9% 10.8% 15.3% 34.4% 3.5% 24.6% 27.1% 3.5% 0% 10% 20% 30% 40% 50% 60% 70% 0% 10% 20% 30% 40% 50% 60% 70% ITS Offshore ITS Managed Services IT Staffing Transaction Processing Info Services VAR Note: EBITDA Margins in red Target Acquirer Acquisition Synopsis Managed Services • • Netherlands-based Interxion acquired the data center business of Netherlands-based Vancis, a provider of colocation, cloud and managed services based in Amsterdam’s Science Park The acquisition doubles Interxion’s existing carrier density in Amsterdam and will allow the Company to provide its metro customers with a low latency and low cost solution offering IT Services • • Australia-based DWS (ASX: DWS) is acquiring Australia-based SMS Management & Technology (ASX: DWS), a provider of IT consulting, managed services and recruitment / contract labor services primarily for the IT sector for $99m DWS continues to acquire similarly focused Australian-based IT services providers (in the past two years, it acquired Symplicit and Phoenix IT & T) with the goal of becoming Australia's leading diversified IT services provider IT Services • • Virginia-based STG Group is acquiring Virginia-based Preferred Systems Solutions ("PSS") (backed by CM Equity Partners), a diversified IT consultancy offering technology, engineering and program management services to government and commercial clients, for $120m The acquisition is STG's first significant transaction since it was acquired in September 2015 by SPAC Global Defense & National Security Systems and is in line with the Company's stated objective to become a platform for inorganic growth IT Services • • Blackstone acquired a majority stake in London-based Cloudreach, a provider of IT consulting and managed services that allow clients to effectively transition to and utilize the public cloud The support of Blackstone will allow Cloudreach to expand its geographic reach and further automate its managed services / cloud operations capabilities Managed Services • • Texas-based CyrusOne (NASDAQ:CONE), a global data center REIT, acquired two data centers (one in Raleigh-Durham, NC and another in Somerset, NJ) from Sentinel Data Centers for $490m CyrusOne remains acquisitive: this transaction marks the Company's fourth since June 2016; it establishes CyrusOne's presence the southeast U.S., expands its portfolio of large enterprise customers and offers an attractive long-term lease profile data center business of two data centers from 1.2x 1.6x 1.9x 0.3x 3.0x 2.6x 0.3x 0.0 0.5x 1.0x 1.5x 2.0x 2.5x 3.0x 3.5x ITS Offshore ITS Managed Services IT Staffing Transaction Processing Info Services VAR 2.3% 8.1% (2.4%) (6.0%) 23.4% 4.0% 2.3% (10%) (5%) 0% 5% 10% 15% 20% 25% ITS Offshore ITS Managed Services IT Staffing Transaction Processing Info Services VAR Tech-Enabled Services Monthly March 2017 LTM Revenue Growth
Transcript of Tech-Enabled Services Monthly March 2017 · 2020. 1. 1. · Tech-Enabled Services Headline...
Tech-Enabled Services Headline Transactions
Enterprise Value / LTM Revenue Enterprise Value / LTM EBITDA
LTM Gross & EBITDA Margins
10.7x 10.7x
6.7x
11.1x
15.6x 14.2x
8.0x
0.0
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
18.0x
ITS Offshore ITS ManagedServices
IT Staffing TransactionProcessing
Info Services VAR
28.7% 33.3%
49.6%
18.8%
43.1%
61.0%
11.9% 10.8% 15.3%
34.4%
3.5%
24.6% 27.1%
3.5% 0%
10%
20%
30%
40%
50%
60%
70%
0%
10%
20%
30%
40%
50%
60%
70%
ITS Offshore ITS ManagedServices
IT Staffing TransactionProcessing
Info Services VAR
Note: EBITDA Margins in red
Target Acquirer Acquisition Synopsis
Managed Services
•
•
Netherlands-based Interxion acquired the data center business of Netherlands-based Vancis, a provider of colocation, cloud and managed services based in Amsterdam’s Science ParkThe acquisition doubles Interxion’s existing carrier density in Amsterdam and will allow the Company to provide its metro customers with a low latency and low cost solution offering
IT Services
•
•
Australia-based DWS (ASX: DWS) is acquiring Australia-based SMS Management & Technology (ASX: DWS), a provider of IT consulting, managed services and recruitment / contract labor services primarily for the IT sector for $99mDWS continues to acquire similarly focused Australian-based IT services providers (in the past two years, it acquired Symplicit and Phoenix IT & T) with the goal of becoming Australia's leading diversified IT services provider
IT Services
•
•
Virginia-based STG Group is acquiring Virginia-based Preferred Systems Solutions ("PSS") (backed by CM Equity Partners), a diversified IT consultancy offering technology, engineering and program management services to government and commercial clients, for $120mThe acquisition is STG's first significant transaction since it was acquired in September 2015 by SPAC Global Defense & National Security Systems and is in line with the Company's stated objective to become a platform for inorganic growth
IT Services
•
•
Blackstone acquired a majority stake in London-based Cloudreach, a provider of IT consulting and managed services that allow clients to effectively transition to and utilize the public cloudThe support of Blackstone will allow Cloudreach to expand its geographic reach and further automate its managed services / cloud operations capabilities
Managed Services
•
•
Texas-based CyrusOne (NASDAQ:CONE), a global data center REIT, acquired two data centers (one in Raleigh-Durham, NC and another in Somerset, NJ) from Sentinel Data Centers for $490mCyrusOne remains acquisitive: this transaction marks the Company's fourth since June 2016; it establishes CyrusOne's presence the southeast U.S., expands its portfolio of large enterprise customers and offers an attractive long-term lease profile
data centerbusiness of
two data centers from
1. Headline Transactions
1.2x
1.6x 1.9x
0.3x
3.0x
2.6x
0.3x
0.0
0.5x
1.0x
1.5x
2.0x
2.5x
3.0x
3.5x
ITS Offshore ITS ManagedServices
IT Staffing TransactionProcessing
Info Services VAR
2.3%
8.1%
(2.4%)
(6.0%)
23.4%
4.0% 2.3%
(10%)
(5%)
0%
5%
10%
15%
20%
25%
ITS Offshore ITS ManagedServices
IT Staffing TransactionProcessing
Info Services VAR
Tech-Enabled Services MonthlyMarch 2017
LTM Revenue Growth
Selected 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]
Annc. Date Sector Acquirer Target Target DescriptionEnterprise
Value Comments2/28/2017 IT Services Arbela
Technologies Corp.Integral USA, LLC Dallas-based Integral provides technology
consulting services including implementationand support for Microsoft Dynamics 365(Dynamics AX and CRM)
NA The acquisition reinforces California-based Arbela'scommitment to the Microsoft Dynamics 365 platform;Arbela was already a Gold Partner and the acquisitionfurther expands the breadth of its service offering onthe platform
2/28/2017 IT Services cPrime Inc. HKM Consulting, LLC
Massachusetts-based HKM Consultingprovides services for the implementation andcustomization of Software Service LifecycleManagement (SSLM) solutions
NA The acquisition is cPrime's first since being acquiredby Calsoft Labs in 2014; HKM's focus on DevOpsdeepens cPrime's portfolio of solutions tailored tohelping clients effectively use the Agile developmentframework
2/28/2017 IT Services Avanade Inc. Infusion Development Corporation
New York-based Infusion Developmentprovides digital transformation servicesincluding software engineering, design anddigital strategy, with a strong expertise inMicrosoft offerings
NA The acquisition expands Avanade’s capabilities todeliver digital transformation services and reinforcesits expertise within the Microsoft ecosystem
2/9/2017 IT Services On Direct Business Services Limited
Connect Support Services Ltd
London-based Connect Support Servicesprovides IT services to SMBs, including on-premise and cloud support, as well asbusiness continuity solutions
NA The acquisition is Direct Business Services' second in2017, after acquiring data backup and disasterrecovery services firm, Data Continuity Group, inJanuary 2017
2/8/2017 Managed Services
Claranet Limited Rely B.V. Holland-based Rely (partially owned by theDaVinci Group) provides a range of ITinfrastructure services, including public andprivate cloud solutions and applicationmanagement services
NA The acquisition reinforces Claranet's commitment tothe Netherlands; with the addition of Rely, theCompany will double its employee base, and increaseits sales by 60% in the country
2/6/2017 IT Services Salient CRGT, Inc. Information Innovators Inc. ("Triple-i")
Virginia-based Information Innovators (backedby DFW Capital Partners) provides healthcareIT services to the federal government
NA The combined company will have annual revenue>$500m and be equipped to better compete in thefederal IT market space with a complete IT offeringspanning infrastructure, network engineering andcloud-based technologies
3. TES Transactions
Select Tech-Enabled Services Transactions Announced in February 2017
www.tmcapital.com /technology
New York641 Lexington Avenue30th FloorNew York, NY 10022Tel: 212.809.1360
Boston201 Washington Street32nd FloorBoston, MA 02145Tel: 617.259.2200
Atlanta1230 Peachtree Street NESuite 550Atlanta, GA 30309 Tel: 404.995.6230
TEV / EBITDA Multiples Over Time
15.6x
14.2x
10.7x
6.7x
10.7x
8.0x
11.1x
3.0x
5.0x
7.0x
9.0x
11.0x
13.0x
15.0x
17.0x
Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 2/28/2017
TEV
/ EBI
TDA
Transaction Processing Info Services ITS IT Staffing Offshore ITS VAR Managed Services
Notes: USD in millions Source: Capital IQ, Company SEC Filings, industry research and TM Capital estimates
