Thomas H. Lee Partners has entered into an agreement to acquire CompuCom Systems, a provider of IT services, from Court Square Capital Partners. The transaction is expected to close in the second quarter of 2013.
CompuCom is a North American IT outsourcing company providing infrastructure management services, application services, systems integration and consulting services, as well as the procurement and management of hardware and software to Fortune 1000 companies. CompuCom has more than 11,500 employees and had $2.3 billion of revenue in 2012. The company is headquartered in Dallas (www.compucom.com).
“Companies across all industries are increasingly turning to third parties to enhance how they meet their business service needs, particularly with respect to IT. Meanwhile, technology continues to evolve quickly; organizational compliance requirements are becoming an expensive burden due to the rise of mobile devices and cloud computing; and end-user computing services require integration of an increasing number of components. CompuCom has demonstrated that it has the tools and human capital to help companies to navigate these challenges,” said Soren Oberg, Managing Director at THL.
Citigroup Global Markets, J.P. Morgan, BMO Capital Markets and Jefferies Finance are providing committed financing for the transaction.
Thomas H. Lee Partners, founded in 1974, is one of the oldest private equity investment firms in the United States. Industries of interest include business and information services; consumer products and retail; financial services; health care; industrial; and media & communications. Since its founding, Thomas H. Lee Partners has raised approximately $20 billion of equity capital and invested in more than 100 businesses with an aggregate purchase price of more than $150 billion. The firm is based in Boston (www.thl.com).
“CompuCom has established itself as a clear leader in providing cost-effective IT service management and solutions and is well known for its exemplary customer service. We believe the company is well-positioned to capture additional market share in its traditional areas of strength as it deepens its expansion into new services towers. We look forward to partnering with the talented CompuCom management team to further grow the business and to continue building value,” said Seth Lawry, Managing Director at THL.
Court Square Capital Partners was established as an independent private equity firm by the former members of Citigroup Venture Capital Equity Partners. Court Square is focused primarily on leveraged buyout transactions in the middle market. Sectors of interest include business services, general industrial, healthcare and technology/telecommunications. Court Square currently manages approximately $5.5 billion of capital and is based in New York (www.courtsquare.com).
© 2013 PEPD • Private Equity’s Leading News Magazine • 4-9-13