GenNx360 Capital Partners has agreed to sell its portfolio company, ITsavvy, to publicly traded Xerox Holdings for $400 million comprised of $180 million in cash at closing and $220 million in secured promissory notes.
ITsavvy is a provider of IT services and products, including software, cloud services, managed services, and hardware (servers, networking products, and workstations – 99% of the company’s in-stock IT products ship the same day) to more than 4,500 small to medium-sized businesses, government agencies, educational institutions, and large enterprises.
GenNx360 acquired ITsavvy in August 2022 through its third fund. During its ownership, ITsavvy closed several add-on acquisitions including enfoPoint Solutions, a Tennessee-based provider of design and build network infrastructure services (May 2021); the K-12 Computing division of Technology Resource Advisors, a Wisconsin-based provider of end-user devices (Chromebooks) and related services for K-12 schools (January 2022); and INOC (Independent Network Operations Consortium), an Illinois-based provider of network operations support services and consulting (February 2023).
In addition to this transactional support, GenNx360 also backed ITsavvy’s launch and commercialization of an AI and intelligent automation strategy.
Today, ITsavvy is led by CEO Munu Gandhi and has more than 500 employees. According to Xerox, ITsavvy TTM’s revenue through August 2024 were more than $400 million.
“We appreciate GenNx360’s support and strategic insights over the past two years. They have been an outstanding partner to work with to enhance and evolve our platform,” said Mr. Gandhi. “We are excited to join forces with a longstanding company in Xerox, one of the great global brands, and we look forward to supporting their next stage of growth.”
“The success of our investment in ITsavvy is a testament to the growth achieved during our partnership with management over the past two years,” said Ron Blaylock, a managing partner at GenX360 and the board chairman of ITsavvy. “We are pleased with the company’s transformation under our ownership and wish Munu and team all the best going forward.”
GenNx360 invests from $25 million to $100 million in North America-based companies that have revenues from $50 million to $500 million and EBITDA from $5 million to $35 million. Sectors of interest include business-to-business services and manufacturing. Since its founding in 2006, New York City-headquartered GenNx360 has acquired 28 platforms and 75 add-on acquisitions.
“It has been a privilege to work with Munu and the ITsavvy team over the past two years. We are incredibly proud of the company’s growth and look forward to following their success in the future,” said Peter White, a principal at GenNx360 and a member of ITsavvy’s board.
Xerox Holdings (NASDAQ: XRX), led by CEO Steve Bandrowczak, is a provider of products and services used in the document management and digital printing industries including multifunction printers, copiers, and scanners, as well as software used in document automation, cloud-based content management, and IT services. Customers of Xerox include small to large businesses, educational institutions, government entities, and healthcare organizations.
Norwalk, Connecticut-headquartered Xerox was founded in 1906 as The Haloid Photographic Company and began selling the Xerox 914, the first plain-paper photocopier, in 1959. The company changed its name to Haloid Xerox in 1958 and to just Xerox in 1961.
The sale of ITsavvy is expected to close before the end of the fourth quarter of 2024
© 2024 Private Equity Professional | October 18, 2024
