Advice on the sale of an IT, cloud and cybersecurity services company
Summary
ST strategy advised the partners on the sale of the company to a technology group, a transaction that was successfully completed.
The digitalisation of SMEs has made outsourcing IT, cloud and cybersecurity a necessity. It is a market with many local players, where larger groups are integrating companies with recurring clients.
ITManaged* evolved from hardware retail to a managed services model for businesses: technical support, its own cloud services, backup, custom development and cybersecurity, with a very loyal client base.
ST strategy advised the partners on the sale of the company to a strategic buyer.
IT services and cybersecurity
Sale of the company
Closed transaction
The full story
Opportunity
The partners had built a profitable business with recurring revenue, but lacked the financing and sales capacity needed to scale in cybersecurity and with larger clients.
The interest of an expanding technology group opened the opportunity to integrate the company into a structure with more resources.
Recommendations
Based on the analysis carried out by ST strategy, we worked on the sale process:
- Financial plan: Preparation of the business plan and a document on the evolution of results, normalising the historical income statement.
- Negotiation: Review of the buyer’s business case and negotiation of the offer, significantly improving value and terms between the initial memorandum and the signed letter of intent.
- Deal structure: Combination of cash at closing, buyer shares and deferred payment, with an exclusivity period.
- Cross due diligence: Preparation of information for the buyer and analysis of the buyer and its shareholders’ agreement.
* The confidentiality of our clients is a priority of the company. Although we have changed their names, the information is real.