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Volt Information Sciences Completes Sale of Maintech
- Enterprise Value $18.3 million
- International staffing and technology outsourcing services provider Volt Information Sciences (NYSE: VISI) announced today that it completed the sale of its IT infrastructure support business Maintech, Incorporated.
- The business is being acquired by Maintech Holdings, LLC, a newly formed holding company that is an affiliate of Oak Lane Partners, LLC.
- According to the press release, the purchase price for the transaction was $18.3 million. Because of a $100,000 holdback, outstanding debt deductions and other expenses and adjustments, cash proceeds at closing will be $13.9 million
Business Services Segment Continues to Draw Interest
- Private Equity An Increasingly Familiar Face: Private equity involvement with solution and service providers continues to increase, and this transaction is a great example of how transactions bring benefits to both sides. Volt is able to better focus its offerings and strengthen its balance sheet, while Maintech benefits from a strong, experienced management team and dedicated support.
- Services in the Spotlight: As seen in several precedent transactions including the merger of SMS and Curvature and the acquisition of Park Place Technologies in Fall 2015, business services organizations continue to be attractive targets – particularly as aging IT equipment creates increased demand.
- Not Disclosed: While the press release listed the purchase price, it did not indicate any transaction multiples. Based on our experience, companies in this sector often trade at multiples of revenue greater than 2x, thanks to their high EBITDA. However, we believe that the revenue for Maintech is larger than this multiple would imply.
For more information about this transaction, click here to read the press release.
martinwolf was not the advisor in this transaction.