MergerTech Accelerates into 2011, Closes Record Number of M&A Transactions
San Ramon-based investment bank delivers innovative approach to technology M&A
SAN RAMON, Calif. – April 12, 2011 – MergerTech (www.mergertech.com), a global Mergers & Acquisitions Advisory firm focused on helping small and medium-sized technology firms realize the value of their business, announces a record number of deals closed in the past six months.
MergerTech uses its senior Technology bankers, deep domain expertise in the Technology space, and relationships with over 1,200 global buyers and sellers to deliver three key values to their clients: transaction execution speed, best terms and value, and greatest certainty of deal closure.
“2010 was an extremely exciting year for MergerTech that focused on significant investments in our brand, infrastructure, people, and relationships with buyers, which allowed us to deliver fantastic results for our clients as evidenced by our most recent deals,” said Nitin Khanna, Chief Executive Officer of MergerTech. “We remain singularly focused on facilitating mergers and acquisitions in the technology market – particularly helping underserved small-to-medium-sized businesses convert their work into wealth.”
“Positive economic factors such as tax cuts, an increase in cash, and built-up demand for these types of companies also contributed to MergerTech clients having a better 2010 than 2009 or 2008. We saw dramatically higher valuations and better deal structures in Q1 2011, as compared to Q1 2010,” continues Khanna. “We expect this trend to continue throughout the year.”
Some of MergerTech’s recently announced key transactions are:
MergerTech facilitated the acquisition of Network Infrastructure Corporation (NIC), a Phoenix, Arizona-based Cisco Gold Partner, by international IT and communications solutions integrator Logicalis Group. NIC provides network consulting and IT services to the K-12 education, state and local government, gaming, and hospitality markets across the Southwestern United States. NIC’s proven model for delivering wireless, security, and video services will provide a platform for Logicalis to expand on those capabilities on a national level. The Logicalis Group is a division of Datatec Limited, a $4 billion revenue business listed on the Johannesburg and London AIM Stock Exchanges.
MergerTech facilitated the acquisition of Logos Communications Systems, Inc. by Black Box Corporation (NASDAQ:BBOX). Logos, a privately held company headquartered in Westlake, Ohio, is a silver-certified Cisco partner with advanced specializations in unified communications, wireless LAN, routing and switching, and security. Black Box is a leading technical services company dedicated to designing, building and maintaining today’s complicated data and voice infrastructure systems. Black Box services more than 175,000 clients in 141 countries with 195 offices throughout the world.
The following transactions have closed recently and have yet to be announced by the parties. We include them here to show continued momentum in the small and medium technology space both for MergerTech and the M&A market in general.
The first was the acquisition of a managed services provider by a large, regional IT professional services firm. This acquisition provides the buyer with new capabilities to serve its existing client base and extends its market coverage into an adjacent region.
The second was a cross-border transaction between a US-based technology solutions provider and a public company in Asia seeking to expand its footprint in North America. The buyer was a preferred partner for IT services to Fortune 500 companies worldwide and the seller has delivered customized technology solutions to its clients for more than 20 years.
In the third transaction, a provider of instructor-led training solutions for leading application platforms delivered to mid-sized commercial clients was acquired by a firm providing professional services to Financial Services, Insurance, Telecom, HealthCare, Retail, and Public Sector organizations.
MergerTech’s advice to clients is that at a minimum they should have an in-depth discussion with an M&A advisor and obtain a professional valuation for their firm before finalizing their strategic plan for 2011 and beyond. We welcome such discussions with all small and medium technology companies at www.mergertech.com.
For the latest insight into the M&A climate for small-to-medium sized technology companies, please visit the MergerTech blog.
About MergerTech – Converting Work Into Wealth
MergerTech is a specialty investment banking firm focused solely on small-to-medium- sized technology and technology-enabled services companies. It helps management teams and investors realize the value of their companies through its deep domain expertise and global knowledge of buyers. The company aims for industry-leading targets of an average of 120 days for a transaction cycle with a goal of achieving an 80% close rate. These results are driven by fast, knowledge-driven buyer-seller matches, a deep understanding of the best terms and value, and an efficient and nimble deal management process. MergerTech leaders have experience in all aspects of technology investment banking, including mergers and acquisitions, capital raises for growth or recapitalization, and a spectrum of advisory services. For more information, go to www.mergertech.com.
