Investcorp has sold its portfolio company VText Holdings (Veritext) to private equity firm Pamplona Capital Management. Investcorp acquired Veritext in July 2010 from The Riverside Company which in turn had acquired the business in August 2005.
Investcorp was very active during its ownership of Veritext. Since being acquired by Investcorp, the company doubled its sales force, completed 16 add-on acquisitions, opened two offices in new markets, and made investments in technology and marketing.
Today, Veritext is a provider of deposition and litigation support services across the US. Customers include law firms – including attorneys, paralegals, and legal administrators – as well as corporations and regulatory agencies. The company’s services include court reporting, deposition and conferencing, privacy and data security, national and international coverage, real time depositions, exhibit management services, and transcription services. Veritext was founded in 1997 and is led by Nancy Josephs, Chief Executive Officer. The company has over 500 employees and is headquartered in Livingston, NJ with additional offices, deposition rooms, and conference centers across the United States (www.veritext.com).
“When Investcorp acquired Veritext in 2010, we knew the company had the potential for growth in the litigation services market,” said Maud Brown, Managing Director of Corporate Investment in North America. “Through organic and inorganic strategic initiatives, Veritext has grown faster than the industry. Veritext’s expansion coupled with the company’s ability to generate strong free cash flow has created significant value to all stakeholders.”
Investcorp invests in mid-size companies operating in an array of industry sectors that have total enterprise values of between $200 million and $1 billion and are located in North America or Western Europe. As at June 30, 2015, Investcorp had $10.6 billion in total assets under management. The group has offices in New York, London, Bahrain and Saudi Arabia (www.investcorp.com).
Pamplona, the buyer of Veritext, makes direct private equity, fund of hedge funds, and single manager hedge fund investments. The Veritext investment is being made from Pamplona’s fourth private equity fund, Pamplona Capital Partners IV, L.P., a $4 billion fund raised in 2014. Pamplona was founded in 2005 and is based in London and New York (www.pamplonafunds.com).
“Veritext is the leading provider of deposition services in the US and we look forward to working with CEO Nancy Josephs, CFO Richard Antoneck and the rest of the management team to support the continued growth of the company,” said William Pruellage, a Partner at Pamplona. “We believe that Veritext has significant opportunities to leverage its proprietary technology offering to continue to grow both organically and through accretive tuck-in acquisitions.”
Pamplona received legal advice from Skadden Arps (www.skadden.com). The transaction was financed with a first lien term loan arranged by Madison Capital Funding (www.mcfllc.com), BMO (www.bmo.com) and Antares Capital (www.antarescapital.com) as well as a second lien term loan arranged by Eaglehill (www.eaglehillcapital.com), PennantPark (www.pennantpark.com) and Babson Capital Management (www.babsoncapital.com).
© 2016 PEPD • Private Equity’s Leading News Magazine • 2-1-16